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Fortanix Teams with HPE and NVIDIA to Embed Confidential Computing in AI Factories

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AI Factory

What is AI factory?

Simply put, AI factory are environments designed specifically to train, deploy and operate AI models at scale. They're different from traditional data centers in that they’re optimized for continuous AI workloads by combining accelerated compute, data pipelines, orchestration and security all in a unified system. 

Unlike general-purpose infrastructure, AI factory are built for AI as the primary output, not just one workload among many others. Once organizations are ready to move beyond experimental AI, this gives them production-grade systems that run reliably and continuously. 

What role does Fortanix Armet AI play in AI factory?

Fortanix Armet AI provides the security layer for AI factory by protecting data and models while they’re actively in use. It enables confidential AI workflows backed by hardware isolation and cryptographic controls, allowing organizations to securely run sensitive AI workloads. 

This is especially important in AI factory where data and model weights must be decrypted during execution. Armet AI keeps sensitive assets protected even from infrastructure-level access. 

How do AI factory handle model training vs inference?

Training and inference pipelines are typically separated to optimize performance and cost. While training tends to focus on large-scale, batch compute, inference should be optimized for low-latency and continuous execution. 

This separation allows you to scale each phase independently, ensuring you're using accelerated (and costly) compute efficiently whiles till meeting real-time application requirements. 

Do AI factory require confidential computing?

Not all AI factory require confidential computing, but it’s essential when models work with sensitive, regulated or proprietary data. Confidential computing ensures that the data and the models themselves are protected even during processing, not just when the data is at rest or in transit. 

Without confidential computing, sensitive data is exposed in memory during execution. For businesses operating in regulated industries or looking to preserve data sovereignty this level of protection is a must 

What workloads run inside an AI factory?

AI factory support everything from data preparation and model training and tuning, to inference, model evaluation and monitoring. They can also host other supporting services for things such as MLOps, observability and governance. 

By placing these workloads in a single location, AI factory reduce data movement and the friction that can arise with more distributed architecture. This helps teams move faster from experimentation to production. 

Are AI factory only for training large language models?

No. Large language models are certainly a common use case, but AI factory can also support things like computer vision, recommendation systems, predictive analytics and domain-specific models for various industries. 

Many organizations are using AI factory to run multiple AI workloads simultaneously. The setup allows them to support different business units on a shared, optimized infrastructure and platform. 

How are AI factory used for generative AI?

AI factory provide the infrastructure needed to train, fine-tune, and run GenAI models at scale. This helps organizations operate GenAI continuously while maintaining performance, governance and security controls. 

They’re particularly valuable for GenAI use cases that require repeated access to large datasets. AI factory are also ideal for frequent model updates without disrupting production. 

What industries benefit most from AI factory?

The main industries currently benefiting most include government, financial services, healthcare, telecommunications, manufacturing and research. Organizations in these sectors are often looking for scalable AI performance along with strict data governance and compliance. 

These industries have a few things in common: they tend to manage sensitive data, and they face regulatory oversight. AI factory allow them to adopt AI without compromising their industry’s compliance requirements. 

How do AI factory protect proprietary models?

AI factory protect proprietary models through isolation, encryption and controlled access to model weights. Techniques such as confidential computing help ensure that models can’t be inspected, copied or tampered with, even during execution. 

This protection will only become more critical as models increasingly represent valuable intellectual property. It also helps prevent insider threats and model exfiltration. 

Can cloud providers access data in AI factory?

In traditional environments, cloud operators might have privileged access to infrastructure. But the beauty of AI factory using confidential computing is that data and models can be cryptographically isolated so that even infrastructure operators cannot access them. 

This allows organizations to use cloud-based AI factory without fully trusting the underlying platform. It also supports stricter compliance and sovereignty requirements. 

How does confidential computing apply to AI factory?

Confidential computing is the technology that enables AI workloads to run within hardware-enforced, trusted execution environments—literally a physical component on modern CPUs and GPUs. This allows data and models to remain encrypted and protected as they are processed within an AI factory. 

Confidential computing moves security closer to the workload itself, which reduces the dependence on network-based or perimeter security controls. 

How are encryption keys managed in AI factory?

Encryption keys are typically managed with a centralized key management system and strict policy controls. In secure AI factory, keys are released only for verified workloads, typically via cryptographic attestation. 

All of this is a technical way to say that your keys are never exposed unnecessarily. A sound key management strategy helps enforce separation of duties between infrastructure and AI workloads. 

Are AI factory built on-prem or in the cloud?

AI factory can be deployed on-premises, in the cloud or across hybrid environments. The choice depends on the organization's specific needs when it comes to performance, data sensitivity and regulatory requirements. 

Many organizations take on  a phased approach, starting and testing in one environment and expanding as AI usage grows. Deployment flexibility is a key advantage that modern AI factory design provides. 

Can AI factory be deployed in hybrid environments?

Yes. Many organizations today deploy AI factory across hybrid environments so they can combine on-prem or sovereign infrastructure with cloud-based resources, all while maintaining consistent security and governance. 

For many organizations, this is the best of both worlds: hybrid deployments allow them to balance performance, cost and compliance while making it easier to integrate AI with existing systems. 

What is a sovereign AI factory?

A sovereign AI factory is an environment in which data, models and workloads remain under the control of a specific organization or nation. The idea is to enforce data residency, governance and legal jurisdiction requirements. 

Sovereign AI factory are commonly used where national laws or regulations restrict how data can be processed. They're also helpful in reducing the dependency on foreign infrastructure. 

How do governments use AI factory?

Governments use AI factory to support national AI initiatives, public services, defense, healthcare and research. These environments are attractive to governments because they allow them to adopt and roll out AI while maintaining control over sensitive national data. 

They also enable secure collaboration across agencies and nations, which can ultimately help governments modernize services without increasing security risk. 

Can AI factory support data residency requirements?

Yes. AI factory can be designed to ensure that data and models never leave specific geographic or legal boundaries, meaning organizations can meet data residency and sovereignty regulations. 

Crucially, this includes controlling where data is processed, not just where it’s stored. AI factory can also support full auditing and compliance reporting. 

Why are enterprises investing in AI factory now?

As AI production ramps up, enterprises need infrastructure that delivers predictable performance, scalability and top-class governance. AI factory are designed to soften the infrastructure burden associated with adoption and support long-term AI strategies. 

They also help organizations reduce the complexity that can occur as AI usage grows. For many enterprises, AI factory make large-scale AI low-risk and sustainable. 

Are AI factory the future of enterprise AI?

AI factory aren’t a “must” for every use case, but they’re becoming a key component for organizations that run AI at scale. As AI becomes a core business operation, infrastructure that’s purpose-built to handle it will become increasingly important. 

As it stands today, many enterprises are using AI factory alongside etheir xisting platforms. This hybrid approach supports both innovation and operational stability. 

How do AI factory generate business value?

AI factory enable organizations to iterate on models, lower operational friction and achieve more reliable AI performance. Over time, this translates into better decision-making, automation and competitive advantages. 

They also shorten the path from model development to production that’s impactful, which is another way of saying they help organizations realize ROI from their AI investments faster. 

Is an AI factory better than traditional ML platforms?

Not necessarily, but it’s important to understand that AI factory and ML platforms serve different purposes. ML platforms are all about tools and workflows, while AI factory serve as the underlying infrastructure to reliably operate AI at scale. 

In many cases, machine learning (ML) platforms run on top of AI factory. Together, they form a complete AI stack. 

How do AI factory change the economics of AI?

Since AI factory centralize and optimize AI workloads, they reduce inefficiencies, improve the utilization of accelerated compute, and, ultimately, lower the cost of AI output over time compared to stitched-together infrastructure. 

This can make advanced AI use cases economically viable, especially when they start to scale; better utilization reduces wasted compute resources. 

Do AI factory really improve AI outcomes?

Yes, but only when implemented correctly. AI factory are meant to improve consistency, performance and reliability, which directly impacts model quality and business results. 

Stable infrastructure reduces the noise that can affect model behavior. This leads to more predictable and trustworthy AI systems. 

Are AI factory just rebranded data centers?

Not really. While they may physically resemble data centers, AI factory are architected specifically for AI workloads, with different assumptions about compute, data flow and security. 

Their design prioritizes AI throughput and protection rather than general IT flexibility. So, they’re more than just “rebranded”; they’re fully re-architected. 

Who actually needs an AI factory?

Organizations running continuous, large-scale or sensitive workloads benefit most from AI factory, which include enterprises, governments and research institutions where AI is mission-critical. 

Smaller teams or early-stage AI projects may not require this level of specialization... yet. But they may eventually, as AI factory are best suited for mature AI programs. 

What are the risks of AI factory?

Risks include the centralization of sensitive data, new and expanded attack surfaces and increased operational complexity. But these risks can be mitigated with strong governance, isolation and security controls. 

Baking security into the architecture from the beginning is essential. Ongoing monitoring and policy enforcement are also critical. 

How do you build a sovereign AI factory?

Building a sovereign AI factory means selecting trusted infrastructure, enforcing data residency, implementing strong encryption and access controls, and using tech like confidential computing to protect data while it’s in use. 

Governance, legal frameworks and operational processes are just as important as the supporting technology. Sovereign AI factory require cross-functional planning. 

Is an AI factory just a supercomputer?

Not at all. A supercomputer focuses on raw compute performance, while an AI factory includes orchestration, data pipelines, security, governance and the tooling needed for production-grade AI. 

AI factory are designed to operate AI systems over time, not just run benchmark workloads. Higher computing power may be ideal, but supercomputers and AI factory are completely different things. 

What are the main components of an AI factory?

Core components include accelerated compute, high-speed networking, data pipelines, AI platforms, observability tools and security layers such as encryption, key management and confidential computing. 

Together, these components create a structured, repeatable environment for AI at scale. This makes AI factory easier to govern and secure. 

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