Asustek Computer Inc (華碩) yesterday showcased key components of its artificial intelligence (AI)-driven smart city initiatives at a trade show in Taipei, eyeing new business opportunities as cities develop sovereign AI infrastructure.
Advances in generative, multimodal and physical AI are driving cities toward a new phase of “sovereign AI,” Asustek cochief executive officer Samson Hu (胡書賓) told reporters on the sidelines of the Smart City Summit and Expo at Taipei Nangang Exhibition Center’s Hall 2.
The company showcased its “AI City” framework, which comprises three layers — computing infrastructure centered on AI servers, AI models and a platform layer for data processing and integration.
Photo: Chen Yi-kuan, Taipei Times
The framework supports applications such as smart transportation, healthcare, energy management and public services, enabling governments to shift toward data-driven decisionmaking, he said.
AI City initiatives are expected to generate multi-layered business opportunities as AI demand becomes more distributed, and extends to edge computing and Internet of Things devices, he said.
Asustek’s products include NUC mini PCs, industrial PCs and edge AI systems developed with Nvidia Corp, Hu said.
Photo courtesy of Asustek Computer Inc
Near-term growth would mainly come from AI server infrastructure, while edge AI is expected to drive long-term demand, he said.
To address power constraints, Asustek is promoting “virtual power plants,” which integrate idle electricity from households, businesses and factories.
Pilot projects are under way in Taichung, Yunlin County and Tainan, with applications to roll out from this year, he said.
The company has formed a “smart city national team” with Hon Hai Precision Industry Co (鴻海精密) and more than 30 Taiwanese firms to advance AI City solutions, he added.
At the expo, Asustek subsidiary Taiwan AI Cloud (台智雲) presented a comprehensive package of AI computing infrastructure, localized models and AI platform services, which would enable cities to quickly establish scalable AI infrastructure that meets cybersecurity and local governance requirements, it said.
Taiwan AI Cloud president Peter Wu (吳漢章) said the firm’s overseas customers are shifting from purchasing hardware to seeking integrated AI infrastructure and solutions, as generative AI advances and demand for graphics processing unit servers rises.
Overseas markets would be the firm’s main growth driver over the next three years, as it aims to maintain double-digit percentage growth this year and targets about 50 percent of revenue from abroad by 2028, he said.
The company has focused on enterprise clients in Japan and government projects in Vietnam, Wu said.
Europe is emerging as a potential market amid rising demand for sovereign AI and computing power, he added.
As AI development shifts from training to inference, enterprise demand is expected to become the next major growth driver, Wu said.
Taiwan AI Cloud plans to debut on the Emerging Stock Board in May. It reported revenue of about NT$3 billion (US$94.1 million) last year and net profit of about NT$130 million, company data showed.
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