Ignore the noise & stick to the strategy

Hamish Chamberlayne, Head of Global Sustainable Equities, and Richard Clode, technology equities portfolio manager at Janus Henderson Investors, discuss how the tiny graphics chip is playing a huge role within the global digital transformation.

Graphics processing units (GPUs) are engines for the future of computing. Designed for parallel processing, a GPU is a specialised electronic circuit card that works alongside the brain of the computer to enhance the performance of computing. If you are reading this article on an electronic device, a GPU is likely powering your screen display.

The power of parallelism: applications in AI and deep learning

While GPUs were initially used in computer graphics and image processing, the use case has significantly broadened as technology has evolved. Moore’s Law – the observation that the number of transistors in an integrated circuit doubles every two years while the cost of computing halves – has made GPUs cheaper and more readily available.

Artificial intelligence (AI) and deep learning models, which require intense parallel processing of thousands of neural networks simultaneously, also rely on GPUs. The application of deep learning is broad, from enabling web services to improving autonomous vehicles and medical research. This technology will form the basis of the next generation of computing platforms as businesses begin their digital transformations.

Digitalisation driving decarbonisation

We believe that digitalisation plays a positive role in economic development and social empowerment, and we also see a close alignment between digitalisation and decarbonisation. Digitalisation ‘cracks’ open the shell of traditionally analog functions, promoting data transparency and enabling businesses and individuals to make wellinformed decisions about consumption, production and reduction based on current behaviours.

We have already begun to see digitalisation penetrate and advance traditional practices – manufacturers integrate technology into industrial processes to optimise production, building managers use smart technology and data analytics to ensure energy is consumed only when necessary, and intelligent transportation systems analyse traffic data to reduce congestion, fuel use and emissions.

Does powering technology come at a cost?

One of the critical challenges with a global digital transformation is the significant energy needed for high-performance computing. It is important for us to understand the true energy cost demanded from technology, and what can be done to lower overall energy consumption. There is a misconception that an increase in data centre usage equates to increased energy demand. According to the International Energy Agency (IEA), data centre energy use has remained flat despite an explosion of data centre demand and internet traffic – chart 1. This disparity is driven by efficient systems and processes. For AI applications, some GPUs can be up to 42 times more energy-efficient than traditional CPUs. Meanwhile, some hyperscale GPU-based data centres use only 2% of the rack space, making them more space-efficient compared to CPU-based systems.1 In short, GPUs pack a punch. By enabling smarter use of energy, they contribute in part to keeping energy use to a minimum.

The path to net zero

While GPUs can optimise energy, they do not run without emitting carbon. Like all industries, technology will have to do its part to achieve net-zero emissions. In 2021, the International Energy Agency (IEA) reported “more efforts needed” in the data centres and data transmission sector to reach net zero.3 We believe a focus on ongoing efficiency improvements in data centre infrastructure is integral to meeting these goals, reinforcing the role that GPUs play in creating a sustainably digitalised world.

Conclusion

Digitalisation is the cornerstone of our future. From humble beginnings, the GPU has evolved into one of the most critical facilitators of innovation and digital transformation for society. We also believe that the next generation of computing is essential to achieving global sustainability goals. When analysing individual companies, we believe that shifting to a low-carbon business model is a marker for long-term success, and we look to technology to enable this change.

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