■Business Overview

1. Market trends

Most of the solutions provided by GDEP Advance ＜5885＞ are for AI applications. Advanced companies and organizations that construct AI models are moving to accelerate large-scale demonstration experiments to build unique generative AI models and investments for actual operation. Also, even in companies and organizations that have limited use of AI, creation of simple models and introduction of embedded applications for generative AI will accelerate, and demand for AI systems is expected to further increase.

The core technology that determines the performance of AI systems is GPU, and it is NVIDIA in the US that has gained an overwhelming share of 80 to 90 percent of the global market. NVIDIA has disclosed a roadmap of products and technologies, and it is planned that new products will be introduced every year until 2027 for GPUs, such as Blackwell (2024), Blackwell Ultra (2025), Rubin (2026), and Rubin Ultra (2027). The AI market is expected to be revitalized by the continuous evolution of technology and application development.

2. Customer structure

The company's customers have a high composition ratio of universities and research institutes, accounting for about 50%. This is partly due to the fact that transactions for universities and research institutes have been the main focus since the days of electronic component trading companies, which is our ancestral business. In recent years, we have entered an era where AI is used in various scenes, and the ratio of operating companies is increasing. Companies and organizations in various industries such as the automobile industry and other manufacturing industries, AI-related startups, the medical industry that utilize AI in drug discovery, etc., the information and communication industry, and the media & entertainment industry have become customers of the company.

3. The company's strengths

The company has built a high competitive advantage as a source of high technical capabilities certified by 4 global processor manufacturers and planning and product procurement capabilities born from collaboration with global IT vendors. Strengths and characteristics include 1) proposing optimal solutions combining the latest technology and unique gimmicks, 2) diversity in solution provision forms, 3) customer continuity through service & support, 4) project handling with an eye on small mass development, and 5) unique positioning that realizes differentiation from other companies.

The company has obtained 11 types of certifications from 4 global processor manufacturers (NVIDIA, Intel Corporation ＜INTC＞, Advanced Micro Devices, AMD XILINX), and its high technical capabilities are endorsed. Incidentally, this is the only company in Japan that has received certification from these 4 companies. In particular, it is a domestic No. 1 (number of certified licenses, AI server DGX sales record, number of awards received) partner that has built a good relationship with NVIDIA since 2007. Examples of certifications include “NVIDIA AI Solution Provider Preferred” for small to medium scale AI systems and “DGX Cloud Solution Provider Preferred” for large-scale cloud AI, etc., which contribute to the company's seamless responsiveness.

There are many other companies in the same industry that are focusing on the growing AI market and entering it. NVIDIA's domestic partners alone have approximately 80 companies listed. There are also entrants from peripheral industries such as software vendors, SaaS, SIer, and CIer (cloud integrators). Among them, the company has established a unique position as a provider that has strong knowledge of cutting-edge hardware and its integration, and can provide flexible custom-made solutions.

(Written by FISCO Visiting Analyst Hideo Kakuta)