Oct 29 (Reuters) -

Artificial intelligence server maker Super Micro Computer ( SMCI )

on Wednesday said it has created a subsidiary catering

to U.S. federal agencies, amid a drive to increase efficiency in

the government.

Shares of the company were up around 3%.

The White House in April had

ordered federal agencies

to name chief AI officers and develop strategies to expand

the government's use of the technology.

Government entities such as the Federal Aviation

Administration have been deploying AI to help with incident

reports and risk assessment, while other agencies attempt to

automate repetitive logistical and administrative tasks.

"Through this initiative, Supermicro will supply U.S.

federal government agencies with full data center IT solutions

that are manufactured and tested from our manufacturing

facilities in Silicon Valley, California," company CEO Charles

Liang said.

Super Micro's announcement comes a day after AI

infrastructure provider CoreWeave ( CRWV ) said it would enter

the U.S. federal market to provide cloud services.

Super Micro is also exploring new manufacturing facilities

in the U.S. to meet growing demand, it said.