Darren Aftahi: Great. Thank you.
Operator: Our next question is from Rob Brown with Lake Street Capital Markets. Please proceed.
Rob Brown: Hi, good morning.
Wes Cummins: Good morning, Rob.
Rob Brown: Just following up on the new anchor customer, could you give us a sense of sort of what vertical that customer is in, I think you mentioned, I guess, enterprise or the VC-backed side. Which sort of group is that customer in?
Wes Cummins: So we can’t do that, but what I can tell you is the customer set that we are seeing of all the people that are looking at the site, there’s not a lot of companies that exist in the world that are going to take down 100 megawatts or 200 megawatts or 300 megawatts themselves. So it’s a very small group and all of the companies that are in the mix for us in North Dakota are names that everyone would easily recognize. They’re looking for high-power density hosting, high-power density data center capacity, but it’s all companies that you would recognize the name instantly.
Rob Brown: Okay. Okay. Thank you. And then I just wanted to follow up on the GPU discussion around, I guess, do you still have commitments to buy the 26,000 GPUs and deploy them after May or is that still to be determined on contract activity?
Wes Cummins: Yeah, those orders are still valid, even up to the 34,000. And so we just expect to continue. By the way, Rob, just to clarify on those orders, it’s 34,000 right now for H100. We can still change those orders, whether it’s for H200, GH200, right? These are fluid for us. So as the market evolves, we’re able to react to that. But we still have those in queue and the ability to bring those when all of the components are available. So the issue in the quarter we had just now, as David mentioned in his prepared remarks, just to give clarity on that, so we took delivery of a second cluster during the quarter. We were paying for that cluster. Those were the expenses. In total, we’re just under $4 million. So paying for that cluster without that cluster generating revenue because we didn’t have the InfiniBand components to fully commission that cluster and turn it over to our customer.
So we basically paused the GPU deliveries ourselves because we don’t want to be paying for these GPUs while we can’t offer them to our customers and generate revenue for them. So that’s really what’s happened for us, but we still have all those orders in place and expect to deploy those. We just need to be more careful, I guess, about when we expect those to be deployed.
Rob Brown: Got it. Great. Thank you for the color. I’ll turn it over.
Operator: Our next question is from John Todaro with Needham & Company. Please proceed.
John Todaro: Great. Thanks for taking my question. A couple of ones here. One, so as you called out before, I think it was supposed to be 20,000 GPUs by December 23. Remember on the last call or the Analyst Day, maybe you did talk about some possible delays in the InfiniBand. Just kind of curious, did that situation get worse than you expected or were those delays kind of on your mind and maybe you guys just mis kind of analyzed it?
Wes Cummins: So, John, specifically on those, we’re getting delivery of certain — of the vast majority of the networking equipment that we needed. There was one particular component, but you need that component to make it work. So in an instance where in one of our clusters, right, we have the entire InfiniBand setup besides like 28 transceivers, just as an example, but you can’t fully commission that cluster and generate revenue. So it’s been just squeezing in those transceivers is specifically what it is. So like I said, we could have taken delivery of a lot more GPUs, but I see no point, and I think it’s detrimental to us to take delivery and not be able to generate revenue and pay for the GPUs. So we just held that off and made that decision in December.
We could have taken a significant number of GPUs in December, but again, no reason to do that. So as those come available, I think that you could see us speed that up again significantly and we’ve started to see that loosen up in the marketplace in late December and January but I’m not ready to say that we’ll be able to speed that up to meet kind of the 20,000 and then 26,000 and 34,000 deployment.
John Todaro: Got it. Okay. And then that’s helpful. Another question I had, so you had mentioned this new customer contract in the Sai compute side, enterprise customer, how you could move to a proof of concept and start maybe delivering on that contract shortly. Just curious, with the delay, wouldn’t the previously existing contract come before this one, or did anything change with those contracts?
Wes Cummins: Nothing has changed with those contracts. And just to clarify, John, we don’t have a contract with the enterprise customer. It’s in proof of concept and then we’d be moving to contracting. So just want to be clear on that. But nothing’s changed with our previous customers. But it’s exciting to see an entire new group show up in the marketplace looking for significant amount of GPU compute. And these are established companies that make money and have a product. And it’s just calling out that that’s kind of a new area of the market that we’ve seen develop over the last — it really started kind of in late November.
