Abstract

On March 3, 2026, U.S. thermal management technology firm Akash Systems, together with AMD and MiTAC Computing, officially launched the world’s first diamond-cooled AI server equipped with the AMD Instinct™ MI350X GPU, securing a USD 300 million inaugural order from an undisclosed major North American client. This follows the commercial delivery of NVIDIA H200 diamond heat dissipation servers in February 2026, marking the full commercial deployment of diamond cooling technology on AMD, the world’s second-largest AI chip giant platform. Diamond heat dissipation has officially crossed the industrialization inflection point and entered its first year of commercialization.

This report conducts an in-depth analysis of the technical details, commercial value and industrial implications of AMD’s USD 300 million order. It systematically sorts out the technology roadmaps, ecological partners and competitive landscape of NVIDIA and AMD in the diamond heat dissipation sector. Based on the latest market data, it forecasts the hundred-billion-level market scale and investment opportunities of diamond heat dissipation in the AI chip field. The report concludes that diamond cooling has evolved from a laboratory concept into a standard solution for next-generation AI servers, and China’s diamond industrial chain will take a leading position in the global industrial transformation.

1. Introduction: AI Computing Power Thermal Management Bottleneck and Breakthrough of Diamond Heat Dissipation Technology

With the exponential growth of large model parameter scales, the power consumption of AI chips has risen from 700W for H100 to over 2000W for Rubin Ultra, with local hotspot heat flux density exceeding 1000W/cm². The thermal conductivity of traditional copper and aluminum heat dissipation materials (copper: ~400 W/(m·K); aluminum: ~200 W/(m·K)) has reached its physical limit, making heat dissipation the core bottleneck restricting the release of computing power.

Diamond (lab-grown diamond), featuring ultra-high thermal conductivity (2000–2200 W/(m·K), 5 times that of copper and 10 times that of aluminum), excellent electrical insulation, and a coefficient of thermal expansion compatible with semiconductor materials, has become the ultimate material to break the bottleneck of high heat flux density heat dissipation. In early 2026, diamond heat dissipation technology achieved successive commercial implementation on both NVIDIA and AMD AI chip platforms, officially kicking off the first year of diamond cooling commercialization.

2.1 Core Order Information

• Release Date: March 3, 2026 (Official Announcement of Akash Systems)
• Order Value: USD 300 million (approximately RMB 2.07 billion)
• Technology Provider: Akash Systems (startup invested by Peter Thiel)
• Server Manufacturer: MiTAC Computing (listed enterprise in Taiwan, China)
• Core GPU Platform: AMD Instinct™ MI350X
• Client Profile: Undisclosed large North American tech company or data center operator (speculated by the industry to be a leading cloud service provider)
• Delivery Status: Mass production of the first batch of servers has started; the specific deployment timeline remains undisclosed.

2.2 Technical Solution and Performance Parameters

Akash Systems’ Diamond Cooling® technology does not replace traditional liquid cooling or air cooling. Instead, it acts as a material enhancement layer embedded in the GPU thermal stack structure, introducing a diamond heat spreading layer between the chip and radiator to realize the coordination of chip-level hot spot management + system-level total heat management.

Key Performance Indicators:

• Temperature Reduction: GPU and High Bandwidth Memory (HBM) temperature reduced by up to 10°C (18°F)
• Energy Efficiency Improvement: FLOPs per watt increased by up to 22%
• Throughput Gain: Token throughput increased by up to 15% under high ambient temperature (~48.8°C/120°F)
• Cooling Power Consumption: Data center cooling power consumption reduced by up to 100%
• Environmental Adaptability: Supports data center ambient temperature up to 48.8°C, greatly reducing refrigeration demand
• Economic Value: A single diamond-cooled server can generate incremental value of up to USD 1 million within four years.

2.3 Technical Principle: Physical Advantages of Diamond Heat Spreading Layer

The core function of the diamond heat dissipation layer is to rapidly spread heat from local hotspots and avoid chip frequency reduction caused by partial overheating. In traditional heat dissipation paths, heat needs to pass through multiple interface materials (TIM1/TIM2, packaging cover, etc.), each generating thermal resistance. With thermal conductivity 5 times that of copper, diamond creates a thermal highway effect in sub-millimeter hotspot areas, quickly spreading heat horizontally to a larger heat dissipation area for subsequent removal by the liquid cooling system.

Comparison with Traditional Solutions:

• Copper Heat Dissipation: Slow heat spreading speed, easy accumulation of hotspot temperature, triggering thermal throttling
• Diamond Heat Dissipation: 5 times faster heat spreading, significant hotspot temperature reduction, maintaining high-frequency operation

2.4 Supply Chain and Industrial Chain Impact

The supply chain for AMD diamond-cooled servers has initially taken shape:

• Technology Licensing: Akash Systems (patented Diamond Cooling® technology)
• Manufacturing & OEM: MiTAC Computing (global leading AI server manufacturer)
• Material Supply: Chinese CVD diamond manufacturers (Huanghe Whirlwind, Liliang Diamond, Zhongnan Diamond, etc.)
• Chip Platform: AMD Instinct™ MI350X GPU + 5th Gen EPYC 9005 CPU
• Software Ecosystem: AMD ROCm™ Software Stack

• The USD 300 million order will directly drive explosive demand for CVD diamond materials in China. Akash Systems has explicitly stated its procurement of diamond heat sink materials from Chinese suppliers, and domestic leading enterprises will benefit from the spillover effect of overseas orders.

3. First Year of Diamond Heat Dissipation Commercialization: Landmark Events and Industrial Progress

3.1 Key Milestones in 2026

3.2 Technology Roadmap: From Experimental Verification to Large-Scale Commercialization

The development of diamond heat dissipation technology has gone through three stages:

1. Laboratory Research Stage (2020–2024): Mature CVD/HPHT diamond growth technology; thermal conductivity exceeding 2000 W/(m·K); massive emergence of academic papers and patents.
2. Engineering Verification Stage (2025): Joint tests conducted by leading chip manufacturers (NVIDIA, AMD); heat dissipation solutions passed reliability verification.
3. First Year of Commercialization (2026): Overseas orders landed; domestic mass production lines put into operation; penetration rate achieved breakthrough from 0 to 1.

3.3 Formation of Industrial Consensus

The simultaneous adoption of diamond heat dissipation by NVIDIA and AMD indicates:

• Double verification of technical feasibility: Two independent technical teams have verified the reliability of diamond heat dissipation.
• Accelerated standardization process: Diamond heat dissipation is expected to become a general thermal management solution for next-generation AI servers.
• Boosted industrial chain confidence: Increased investment enthusiasm across materials, equipment and manufacturing links.

4. Comparative Analysis of the Dual Giants’ Ecosystems

4.1 NVIDIA: Rubin Architecture Establishes Diamond Heat Dissipation Standards

At the 2026 GTC Conference, NVIDIA officially announced that its next-generation Rubin architecture will adopt a system combining diamond-copper composite heat dissipation cover + 45°C warm water direct liquid cooling, marking diamond heat dissipation as the official thermal management standard for NVIDIA AI servers.

Features of NVIDIA’s Diamond Heat Dissipation Solution:

• Technical Route: Diamond/copper composite material as the Lid, directly attached to the GPU chip
• Thermal Conductivity: 2000–2200 W/(m·K), 5 times that of traditional copper heat dissipation covers
• Integration Mode: Coordinated with liquid cooling systems, forming a dual-layer architecture of chip-level diamond heat spreading + system-level liquid cooling
• Partners: Akash Systems (technology licensing), MiTAC (manufacturing), Chinese CVD diamond manufacturers (materials)
• Order Progress: H200 diamond heat dissipation servers delivered to NxtGen in India in February 2026; specific order scale undisclosed.

4.2 AMD: Commercial Breakthrough on the MI350X Platform

The AMD Instinct MI350X platform has become the second mainstream AI chip platform to adopt diamond heat dissipation after NVIDIA, achieving full coverage of the dual giants’ ecosystems.

Features of AMD’s Diamond Heat Dissipation Solution:

• Technical Route: Akash Systems’ Diamond Cooling® technology, with diamond heat spreading layer embedded in the GPU thermal stack
• Thermal Conductivity: 2000–2200 W/(m·K), comparable to NVIDIA’s solution
• Integration Mode: Superimposed on existing air cooling/liquid cooling as a material enhancement layer
• Partners: Akash Systems (technology), MiTAC (manufacturing), AMD (chip platform)
• Order Progress: Secured a USD 300 million launch order from a major North American tech company.

4.3 Technical Synergy and Competitive Landscape

NVIDIA and AMD present a pattern where technical synergy outweighs competition in diamond heat dissipation:

• Homologous Technology: Both adopt Akash Systems’ Diamond Cooling® technology, with highly similar underlying materials (CVD diamond), manufacturing processes (MPCVD) and integration solutions.
• Complementary Market Layout: NVIDIA dominates the high-end training market (market share >80%), while AMD focuses on inference and hybrid computing markets; the two jointly promote the penetration of diamond heat dissipation in diverse scenarios.
• Shared Supply Chain: Chinese CVD diamond manufacturers (Huanghe Whirlwind, Liliang Diamond, etc.) supply materials for both NVIDIA and AMD solutions, forming an industrial pattern of one supplier serving multiple demands.
• Standardization Promotion: Joint adoption by the two giants accelerates the transformation of diamond heat dissipation from an optional solution to a standard configuration.

5. Industrial Impact Assessment

5.1 Revolutionary Impact on the AI Computing Industry

The commercialization of diamond heat dissipation will reshape the cost structure, performance ceiling and deployment model of the AI computing industry.

Performance Breakthroughs:

• Elimination of Thermal Throttling: GPUs maintain maximum frequency operation, boosting computing power utilization by 15–22%.
• Power Consumption Reduction: Data center cooling power consumption reduced by up to 100%, with significant PUE improvement.
• Environmental Adaptability: Supports operation under high ambient temperature, reducing site selection restrictions and cutting refrigeration costs.

• Economic Impacts:

• TCO Restructuring: Despite high upfront material costs, diamond heat dissipation reduces the 5-year full life cycle cost by 20–40% compared with liquid cooling.
• Higher Computing Density: Higher computing power can be deployed in the same cabinet space, lowering space costs.
• Extended Hardware Lifespan: A 10°C temperature drop reduces device failure rate by over 50%.

5.2 Reshaping the Global Semiconductor Industrial Pattern

The rise of diamond heat dissipation will alter value distribution across the global semiconductor industrial chain:

• Rising Material Value: Diamond material cost share increases from less than 5% to 20–30%, enhancing the discourse power of material manufacturers.
• Higher Manufacturing Barriers: MPCVD equipment and diamond processing technology become core moats, benefiting equipment suppliers.
• Rise of China’s Industrial Chain: China accounts for over 90% of global industrial diamond output and will occupy a leading position in the diamond heat dissipation era.
• Competition in Technical Standards: Joint adoption by NVIDIA and AMD lays the foundation for diamond heat dissipation to become an international standard.

5.3 Impact and Transformation of the Traditional Heat Dissipation Industry

Traditional copper/aluminum heat dissipation and liquid cooling manufacturers face transformation pressure:

• Accelerated Technological Iteration: The obvious performance advantages of diamond heat dissipation will gradually erode the market share of traditional solutions.
• Collaborative Development Opportunities: Diamond heat dissipation requires coordination with traditional liquid cooling; liquid cooling manufacturers can transform into diamond + liquid cooling system integrators.
• Cost Competition Challenges: The cost of diamond materials is on a clear downward trend, gradually eliminating the price advantage of traditional heat dissipation materials.

6. Market Scale Forecast and Investment Opportunities

6.1 Market Scale Forecast: Rise of a Hundred-Billion-Yuan Track

Based on data from Open Source Securities, QYResearch and other institutions, the diamond heat dissipation market will achieve exponential growth.

Forecast Scenarios:

• Conservative Scenario (QYResearch): USD 183 million in 2025 (~RMB 12 billion); USD 434 million in 2035 (~RMB 29 billion), with a CAGR of 9%.
• Neutral Scenario (Open Source Securities): The diamond heat dissipation market in the AI chip sector will reach RMB 48–90 billion by 2030, with a median value of RMB 720 billion.
• Optimistic Scenario: Assuming higher-than-expected penetration, the market scale will hit RMB 1.44 trillion by 2030 and exceed RMB 5 trillion by 2035.

6.2 Driving Factor Analysis

Three core drivers of market growth:

1. Exponential Rise in AI Chip Power Consumption: From H100 (700W) to Rubin Ultra (2000W) and Feynman (5000W), traditional heat dissipation materials have hit physical limits.
2. Penetration Breakthrough from 0 to 1: The first year of commercialization in 2026, with adoption by NVIDIA and AMD verifying technical feasibility.
3. China’s Capacity Release and Cost Decline: Mass production lines for 8-inch diamond heat sink chips put into operation; material cost drops by 15–20% annually.

6.3 Focus on Investment Opportunities

Value ranking of core industrial chain links:

1. Material End (Highest Value): CVD diamond manufacturers (Huanghe Whirlwind, Liliang Diamond, Zhongnan Diamond) — high technical barriers, gross profit margin over 45%.
2. Equipment End (Second Highest Value): MPCVD equipment manufacturers (Sinomach Precision, Walsin) — equipment demand grows rapidly with capacity expansion.
3. Manufacturing End (Stable Value): Server OEMs (MiTAC Computing) — benefit from rising AI server shipments.
4. Application End (Flexible Value): AI chip manufacturers (NVIDIA, AMD) — further consolidated technological leadership.

7. Conclusion and Outlook

7.1 Core Conclusions

• Confirmed First Year of Commercialization: The landing of AMD’s USD 300 million order in March 2026, together with NVIDIA’s H200 server delivery in February, marks the official transition of diamond heat dissipation from laboratory R&D to large-scale commercial use.
• Full Coverage of Dual Giants’ Ecosystems: The simultaneous adoption of diamond heat dissipation by NVIDIA’s Rubin architecture and AMD’s MI350X platform forms an industrial pattern where technical synergy outweighs competition.
• Launch of Hundred-Billion-Yuan Market: Under the neutral scenario, the diamond heat dissipation market in the AI chip sector will reach RMB 480–900 billion by 2030, up to RMB 1.44 trillion in the optimistic scenario, with a CAGR exceeding 50%.
• Leading Position of China’s Industrial Chain: China supplies over 90% of global industrial diamond output; leading enterprises including Huanghe Whirlwind and Liliang Diamond will occupy the top of the value chain in global industrial transformation.

7.2 Future Outlook

Short-term (2026–2028): Large-scale Penetration Period

NVIDIA’s Rubin architecture fully adopts diamond heat dissipation as the standard configuration for next-generation AI servers; China releases 8-inch diamond heat sink wafer capacity with material costs dropping by 30–50%; penetration rate rises from less than 1% to 10–15%, with market scale exceeding RMB 100 billion.

Medium-term (2029–2032): Ecological Maturity Period

Diamond heat dissipation expands from AI chips to power semiconductors, optoelectronic devices, 5G base stations and other fields; diamond-copper composite materials become the mainstream solution, occupying over 60% of the high-end heat dissipation market; a global industrial division pattern of Chinese materials + U.S. technology + Taiwan manufacturing takes shape.

Long-term (2033–2035): Technological Innovation Period

Diamond heat dissipation integrates with cutting-edge technologies such as quantum computing and nuclear fusion, triggering a new round of industrial revolution; China becomes the global setter of diamond heat dissipation technical standards and the largest single market; diamond upgrades from the "industrial tooth" to the "cornerstone of semiconductors", supporting the trillion-level digital economy.

7.3 Risk Tips

• Technical Risk: Thermal resistance control at the diamond-chip interface and long-term reliability verification still require time.
• Cost Risk: The decline rate of CVD diamond material costs may fall short of expectations, hindering large-scale penetration.
• Competitive Risk: Technological breakthroughs in traditional heat dissipation materials (graphene, silicon carbide, etc.) may divert market demand.
• Policy Risk: International trade frictions may disrupt global supply chain stability.

Report Data Sources

1. Official Announcement of Akash Systems (March 3, 2026)
2. PRNewswire Reports (March 5, 2026)
3. Financial Media including Eastmoney, Tencent News, NetEase Tech (March 5–15, 2026)
4. In-depth Report on Diamond Heat Dissipation Industry, Open Source Securities (March 2026)
5. Global Diamond Heat Sink Market Report, QYResearch (2026 Edition)
6. Announcements and investor relations records of listed companies including Liliang Diamond and Huanghe Whirlwind.