What Is an AI Factory?

Organisations are pouring millions into AI infrastructure, GPU clusters, specialized processors, and high-speed networks. Yet, for many, GPUs are sitting idle for too long, and the bottleneck isn't compute capacity.

An AI factory is a specialized computing infrastructure managing the entire AI lifecycle at production scale, from data ingestion through training to high-volume inference. Unlike adapted data centers, AI factories integrate purpose-built components optimised for continuous intelligence production, enabling organisations to move beyond isolated experiments to industrialized operations, creating consistent business value.

AI infrastructures that handle AI processing loads are projected to require $5.2 trillion in capital expenditures, according to McKinsey. Yet success depends less on spending and more on architectural decisions, maximising resource utilization. Storage bottlenecks can determine AI factory economics.

Defining an AI Factory

An AI factory is a specialized computing infrastructure designed to industrialize the creation, training, and deployment of artificial intelligence models at production scale. Rather than treating AI as isolated experiments, AI factories consolidate the entire AI lifecycle—from raw data ingestion through model training, fine-tuning, and high-volume inference serving—into integrated systems optimised for continuous intelligence production.

The term reflects a fundamental shift in approach. Traditional data centers were designed for transactional workloads and general computing. AI factories prioritize massive parallel processing, continuous data movement, and the unique I/O patterns that characterize machine learning operations.

Core Components of an AI Factory

AI factories integrate five essential infrastructure layers optimised for production AI workloads.

Compute Infrastructure

Graphics processing units (GPUs) provide the parallel processing power enabling modern AI. Unlike CPUs designed for sequential operations, GPUs execute thousands of calculations simultaneously—ideal for neural network operations. AI factories deploy GPU clusters with specialized interconnects, enabling distributed training across hundreds of processors.

However, raw compute power means nothing without data to process.

Data Infrastructure

AI factories require storage systems delivering consistent, predictable performance under mixed workloads. Training workloads generate large sequential reads while inference creates random-access patterns with small files. Supporting both simultaneously demands specialized architecture.

Modern AI factories increasingly adopt all-flash storage architectures for predictable latency and throughput. Flash systems deliver significantly higher IOPS and lower latency than hard disk configurations, while consuming up to 80% less power and rack space. For power-constrained facilities, this efficiency directly enables GPU capacity expansion—dozens of additional GPU servers can be powered by the energy savings from replacing disk systems with all-flash storage.

Networking Infrastructure

AI workloads generate massive data movement requirements. Distributed training distributes calculations across multiple GPUs, requiring constant synchronization. For example, a 100-billion parameter model training on 1,000 GPUs might transfer petabytes of data daily.

High-bandwidth, low-latency networks become essential. AI factories typically deploy specialized fabrics using InfiniBand or RDMA over Converged Ethernet, delivering consistent microsecond latency and bandwidth measured in hundreds of gigabits per second.

Software and Orchestration Layer

AI factories require sophisticated software to manage complexity. Kubernetes has become the standard for container orchestration, providing consistent deployment patterns and automatic scaling. MLOps platforms add AI-specific capabilities—experiment tracking, model versioning, automated training pipelines, and production serving infrastructure.

The Data Flywheel

The distinguishing characteristic of AI factories is the continuous feedback loop connecting production inference back to training pipelines. Every prediction generates data about context, outcomes, and model confidence. When fed back into training systems, this enables continuous model improvement without manual data collection.

Organisations implementing effective data flywheels see models improve faster than competitors relying solely on curated data sets. Storage architecture determines whether this flywheel operates efficiently or becomes a bottleneck.

AI Factory Storage Architecture: The Hidden Performance Variable

Storage architecture can have a greater impact on AI factory economics than any other infrastructure component, yet it often receives less attention. Many organisations focus on GPU counts and network topology while treating storage as commodity infrastructure. That mindset frequently creates the bottleneck that most limits ROI.

Storage Requirements across the AI Lifecycle

Data Ingestion and Preprocessing

Raw data arrives from multiple sources in diverse formats. Storage systems must ingest information at rates matching production data generation—often terabytes daily—while handling large sequential writes and multiple protocols simultaneously.

Model Training

Training generates predictable, high-throughput sequential read patterns. Models process data sets iteratively, reading the same data multiple times. However, checkpoint saving creates periodic write bursts. Storage systems must absorb these without disrupting continuous read streams feeding GPUs.

When hundreds of GPUs simultaneously request data, storage must deliver consistent throughput to each node. A single GPU waiting idles the entire distributed job, wasting potentially thousands of dollars per hour.

Inference Serving

Production inference creates the most challenging storage workload. Unlike training's predictable patterns, inference generates random-access reads with strict latency requirements. A recommendation engine might handle 10,000 requests per second, each requiring feature reads before generating predictions. Storage systems optimised for large sequential transfers struggle with these patterns. 

Critical Storage Characteristics

Consistent Low Latency under Mixed Workloads

AI factories run multiple workloads simultaneously—training jobs, inference serving, and data preprocessing. AI-optimised storage maintains predictable performance across mixed workloads through quality of service policies, intelligent caching, and parallel architectures.

Scalability without Performance Degradation

AI data grows exponentially. Storage systems must scale capacity without performance degradation. Scale-out architectures distribute data across multiple nodes, increasing both capacity and performance linearly.

Power and Space Efficiency

Data centers face hard limits on power and cooling. Flash storage consumes up to 80% less power per terabyte than spinning disks while occupying less rack space. For power-constrained facilities, this efficiency directly enables GPU capacity expansion.

Benefits of AI Factory Architectur

• Production-scale intelligence manufacturing: AI factories enable continuous production of intelligence rather than one-off experiments. This can serve more inference requests than before consolidation, often with equal or lower infrastructure costs.
• Centralized development and collaboration: AI factories consolidate scattered initiatives into a unified infrastructure. Teams share common platforms with centralized data access. The organizational development cycle is likely to result in reductions after implementation, primarily due to reduced setup time in the environment and simplified data access.
• Optimised economics: Purpose-built AI factories reduce total cost through better resource utilization. AI factories with properly architected storage can achieve significantly higher GPU utilization rates than standard configurations. For instance, a $5 million GPU cluster operating at 80% utilization delivers more value than an $8 million cluster at 50% utilization.
• Accelerated time to production: Often, there are reductions in deployment time after implementing AI factory infrastructure. Faster deployment translates to a competitive advantage—responding faster to market changes and customer needs.

The False Economy of Storage Underprovisioning

AI training performance is determined by the end-to-end pipeline, not just GPU horsepower. AWS notes that training includes multiple interdependent stages and that any stage—especially data access—can become a bottleneck if it can’t keep up with the GPUs.

NVIDIA’s GPUDirect Storage guidance similarly emphasizes that building GPU-accelerated infrastructure requires system-wide I/O planning and tuning across the storage stack, because I/O is a first-order factor in scaled GPU environments.

And research on cloud DNN training pipelines finds that data preprocessing/input handling can be a clear bottleneck—even with efficient software—reinforcing that “feeding the GPU” is often the limiting factor rather than raw compute.

Taken together, the practical takeaway is that storage shouldn’t be treated as a minimized cost centre in GPU projects. It’s a strategic enabler: If the data pipeline isn’t engineered for sustained training I/O, GPU investments risk spending too much time waiting rather than training. 

Implementation Strategies

Build Versus Buy

• Custom-built AI factories provide maximum customization but carry integration risks and typically require 6-12 months for deployment. Organisations need expertise across multiple domains.
• Turnkey solutions bundle components into validated configurations, typically reducing deployment time from months to weeks. Examples include NVIDIA DGX BasePOD configurations paired with optimised storage.
• Hybrid approaches combine validated foundations with selective customization, balancing deployment speed with flexibility.

Deployment Models

• On-premises deployment provides maximum control and optimal performance for sensitive data. Large-scale training often runs more cost-effectively on owned infrastructure than cloud rental.
• Cloud-based deployments offer flexibility and eliminate upfront capital. Organisations access enterprise-grade AI infrastructure through operational expenses.
• Hybrid deployments combine on-premises and cloud infrastructure, using each where it provides optimal value. This increasingly represents the practical default for enterprises.

Everpure: Infrastructure Foundations for AI Factory Success

While compute receives primary attention, storage architecture determines whether GPU investments deliver their potential.

Evergreen//One for AI

This storage-as-a-service offering has SLA-backed performance guarantees based on GPU maximum bandwidth requirements. The service model eliminates capacity forecasting—start with required performance and scale as data grows.

FlashBlade

Unified file and object storage supports the entire AI lifecycle on a single platform. Rather than deploying separate systems creating data silos, organisations consolidate on infrastructure efficiently serving all workload types. RapidFile Toolkit accelerates file operations by up to 20x compared to traditional Linux commands.

AIRI 

This comprehensive, pre-validated AI infrastructure combines® NVIDIA DGX systems with Everpure FlashBlade® and NVIDIA networking. Production readiness can happen in weeks rather than months. Certification on NVIDIA DGX BasePOD and SuperPOD architectures guarantees performance.

Portworx

The Kubernetes data services platform delivers persistent storage, data sharing, and protection for containerized AI applications. This cloud-native approach enables consistent deployment patterns across on-premises and cloud environments.

Energy Efficiency

All-flash architecture delivers up to 80% power reduction compared to disk systems. DirectFlash® Modules provide high-density storage with extended multi-year service life, reducing the frequency of hardware refresh cycles. This efficiency enables practical scaling—more budget allocated to GPUs generating value, less to power-hungry storage.

Conclusion

AI factories represent a shift from experimental AI to industrialized intelligence production. Success requires an integrated infrastructure with each component optimised for AI workloads' unique demands.

Storage architecture plays a critical part. The bottleneck limiting most AI factories isn't insufficient compute—it's storage systems that can't feed GPUs fast enough, creating idle time that wastes millions annually.

Infrastructure decisions made today determine competitive positioning for years. 

For organisations ready to move beyond adapted infrastructure to purpose-built AI factories, Everpure provides the storage foundation enabling maximum effectiveness. Start by evaluating whether your current storage architecture maximises GPU utilization or creates bottlenecks. That single question reveals whether your infrastructure investment is delivering its potential.