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May 21, 2024

Nvidia and Dell Partnership Key to Expanding AI Capabilities Globally: CEO Jensen Huang

Nvidia Corp. Chief Executive Officer Jensen Huang has emphasized the crucial role of the company’s partnership with Dell Technologies Inc. in broadening the reach of artificial intelligence (AI) to a wider array of customers. Speaking in Las Vegas during a Dell conference, Huang stated that this collaboration will enable businesses and organizations to establish their own “AI factories.”

“We want to bring this generative AI capability to every company in the world,” Huang said in an interview with Bloomberg Television. “It’s not about just delivering a box — it’s about delivering an entire infrastructure. It’s an infrastructure that’s insanely complicated.”

Dell, as one of the largest providers of computing infrastructure to government agencies and businesses, complements Nvidia’s market reach. Nvidia has seen a significant surge in sales over the past year, primarily driven by a small group of customers—major data center operators known as hyperscalers. According to Bloomberg, Nvidia’s key customers include Microsoft Corp., Meta Platforms Inc., Amazon.com Inc., and Alphabet Inc., with Dell also being a significant partner.

Nvidia’s strategy focuses on encouraging agencies and businesses to develop their own AI capabilities, thereby increasing the demand for Nvidia’s products. This development requires the robust storage, networking, and computing solutions that Dell provides, making the partnership essential. “Dell is a key partner because of their ability to provide comprehensive infrastructure,” Huang explained.

The CEO is steering Nvidia towards deeper involvement in software tools, computer design, and AI models, expanding the company’s technology application to fields ranging from drug discovery to shipbuilding. Michael Dell, who also appeared on Bloomberg Television, credited Nvidia’s success to its foresight in preparing for the AI shift and its ability to out-innovate competitors.

Nvidia’s stock has reflected this success, climbing more than 90 percent this year and rising 2.8 percent to $951.07 in New York trading on Monday. Similarly, Dell’s stock, which has also surged around 90 percent this year, saw a slight dip of 2.3 percent to $146.06.

Nvidia, now the most valuable tech company after Microsoft and Apple Inc., is set to report its latest earnings on Wednesday. Analysts predict a substantial growth of 243 percent in sales for the last quarter. The company’s rapid revenue growth now nearly matches its annual earnings from just two years ago.

In tandem with Nvidia’s advancements, Dell unveiled a new line of personal computers optimized for AI tasks. While Nvidia continues to dominate the market for AI accelerators—processors critical for developing chatbots and other advanced tools—it currently sells only graphics chips for PCs, not the central processing units (CPUs). When asked about potential CPU production, which would place Nvidia in direct competition with Intel Corp., Advanced Micro Devices Inc., and Qualcomm Inc., Huang deferred the discussion, with Michael Dell humorously interjecting, “Come back next year.”

Through their collaboration, Nvidia and Dell are poised to drive a new wave of AI integration across various industries, making sophisticated AI capabilities accessible to a broader spectrum of businesses and organizations worldwide. This partnership underscores a strategic alignment that leverages each company’s strengths to foster innovation and meet the growing demand for AI infrastructure and applications.

Jhumpa Lahiri

Jhumpa Lahiri

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