Nvidia and Dell Partner to Extend AI Capabilities to a Wider Range of Customers

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ICARO Media Group
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20/05/2024 21h24

In a recent interview, Nvidia CEO Jensen Huang announced the company's partnership with Dell Technologies, aiming to bring artificial intelligence (AI) to a broader customer base and assist businesses in creating their own "AI factories." The collaboration seeks to deliver not just hardware, but an entire infrastructure that can support complex AI capabilities.

Nvidia, known for its sales growth in the past year, primarily relied on a limited group of customers, including hyperscale data center operators such as Microsoft, Meta Platforms, Amazon, and Alphabet. Dell, being a prominent provider of computing infrastructure to government agencies and businesses, is a crucial partner for Nvidia's expansion plans.

The CEO emphasized the importance of getting agencies and businesses to develop their own AI capabilities to spur demand for Nvidia's products. He highlighted the significance of Dell's storage, networking, and computing capabilities in enabling these organizations to fully utilize Nvidia's AI technology.

Nvidia's CEO further shared the company's focus on software tools, computer design, and AI models to extend the reach of their technology beyond traditional sectors. From drug discovery to shipbuilding, Nvidia aims to transform various industries by enabling them to leverage AI in their operations.

Reflecting the success and preparation of Nvidia in embracing the AI revolution, Michael Dell, CEO of Dell Technologies, praised the company for out-innovating its competitors. Both Nvidia and Dell have observed robust stock performance this year, with Nvidia's stock surging over 90% and Dell's rising around the same percentage.

While Nvidia leads the market as the most valuable tech company after Microsoft and Apple, it is expected to report strong sales growth of an estimated 243% in the upcoming earnings report. The company's revenue has grown at such a rapid pace that it now generates the same amount in a quarter as it did in an entire year just two years ago.

In line with their AI-focused endeavors, Dell unveiled a new line of PCs optimized for AI tasks. On the other hand, Nvidia dominates the market as the largest seller of AI accelerators, which are critical for the development of cutting-edge tools such as chatbots.

Looking forward, Huang remained tight-lipped about whether Nvidia will manufacture central processing units (CPUs) in the future, potentially putting the company in direct competition with Intel, Advanced Micro Devices, and Qualcomm.

The partnership between Nvidia and Dell is poised to bring AI capabilities to a wider range of customers, providing businesses and organizations with the necessary infrastructure to unlock the full potential of AI. With their collective expertise and technological advancements, both companies aim to shape the future of industries across the globe.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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