(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 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.