US Company Secures $7 Billion Funding Amid Surge in AI Server Orders

Super Micro Computer, Inc. (SMCI), an AI server manufacturer, has announced a major capital raise by simultaneously issuing tens of millions of shares of common stock and depositary shares of 7% mandatory convertible preferred stock, with JPMorgan and Goldman Sachs serving as joint bookrunners. The company has also established an at-the-market (ATM) program to sell up to $1.25 billion of common shares on a continuous basis. In a separate Form 8-K filing, Supermicro disclosed additional regulatory risks, including related-party transactions with its Taiwanese partner, ongoing governmental investigations, and tightened export controls. Founder and CEO Charles Liang recently transferred several hundred thousand shares to charity but still holds tens of millions of shares, preserving a substantial ownership stake.

On the prior day, Supermicro confirmed that it would raise a total of $7 billion—combining the common stock offering, the mandatory convertible preferred issuance, and the ATM program—to fund the purchase of components required for its AI server backlog. The company also reported that its recently secured large-scale AI server orders have grown into the multi-billion-dollar range. In addition, Supermicro is expanding its footprint in offshore data centers by partnering with South Korea’s Samsung Heavy Industries, a Greek shipowner, and Lloyd’s Register to commercialize 50 MW floating AI data centers.

Headquartered in California, Supermicro manufactures server, storage, and AI infrastructure solutions. Collaborating with leading semiconductor firms such as NVIDIA and AMD, it supplies GPU-powered high-performance servers and has become a key provider in the fast-growing generative AI infrastructure market. At the same time, the company faces regulatory and demand risks arising from U.S.-China technology tensions, export controls and sanctions, and the cyclical nature of data center investments—factors that contribute to its notable earnings and share-price volatility within the AI server sector.