Scott Herren: On the cap return question, Jim, I’d just reiterate what I said earlier. With the consistency of buybacks now running right around $1.25 billion per quarter, so $5 billion a year, the dividend consumes another $6.5 billion. That’s $11.5 billion of cap return that we’re committed to. And I do expect to continue to, as you’ve seen us do for the last 12 years, make increases in our dividend payment as you look ahead. So that’s one lens on it. I would say on the M&A and spin-off part of that, we’re constantly evaluating that. We’re constantly evaluating what’s available in the order marketplace. You saw we closed three, albeit small kind of tech tuck-in, but three acquisitions during the quarter. The team’s very active. We’re constantly looking at that space as well as the value in our own portfolio. And so there’s nothing new to report there, but those are constant things that we look at.
James Fish: Helpful color guys. Thanks.
Marilyn Mora: All right. Next question please.
Operator: Thank you. Ben Reitzes with Melius Research. You may go ahead, sir.
Ben Reitzes: Hey, guys, thanks for the question. I wanted to double-click on an earlier question with regard to hyperscalers, the $500 million in AI orders you had a briefing in June. I was wondering, have things picked up in terms of activity there? It seems like maybe it has. And I wanted to see if there’s further traction that you could articulate in Silicon One. Like what kind of activity are you seeing there? And how big a business can this be?
Chuck Robbins: Yes. Well, Ben, welcome and thank you for the question. We have definitely seen traction in the space. Lots of discussions, lots of architectural discussions, lots of input from those customers on what they’d like to see in the next generation of silicon as an example. And the teams are off building that we just delivered in June. As I said earlier, the next-generation ASIC that actually is built for this, but there’s going to be more and more purpose-built silicon over the next couple of years. And the teams are working on that. And those customers are having a great deal of input in how that silicon gets designed. And in some cases, it’s unique to each one. And so that’s the beauty of us having such an advanced silicon capability.
It allows us, if we need to, to actually build unique silicon by customer because these opportunities are so large. In the last call, we talked about the fact that this would probably be 3 to 4 times the opportunity size of the original cloud build-out. And unfortunately for us, as it’s been well documented, we missed the original cloud build-out. But I can say with every bit of confidence right now that as we go through this AI transition to Ethernet, we are super well positioned. We have incredible silicon that they have been using in other parts of their portfolio. We won three more use cases last quarter. We now are installed in 21 use cases across the top six of these providers. And we expect that, that momentum will just continue over the next few years.
I do think that in the short term, InfiniBand is probably going to still be the preferred in most cases, but they are trialing. And we will, much like we already have, we’ll get some opportunities to run Ethernet underneath season. And as we deliver Scheduled Fabric, it will become even more prevalent.
Ben Reitzes: Okay. Thanks a lot, Chuck. It’s good to be back .
Chuck Robbins: Thanks, Ben
Scott Herren: Thanks, Ben.
Marilyn Mora: Thanks, Ben. We’ll take the next question.
Operator: Tal Liani with Bank of America. You may go ahead.
