Dell launches new AI computer with Qualcomm chips, Nvidia: Collaboration with Dell is key to expanding AI

Author: Fang Jiayao

Source: Hard AI

Dell, with the help of "AI Dongfeng", not only took the opportunity to launch a new AI computer and reached a strategic cooperation with NVIDIA, but also attempted to promote AI technology to every enterprise globally in order to drive the company's performance growth.

On Monday, May 21st, Dell Technologies unveiled a series of new personal computers optimized for AI tasks at its annual conference. These computers are equipped with AI chips manufactured by Qualcomm, and the built-in Neural Processing Unit (NPU) can accelerate AI tasks such as running chatbots. Moreover, the new computers come with dedicated keys that can activate Microsoft's AI Copilot service with one click. Microsoft's AI Copilot service uses generative AI technology to automatically summarize documents and write memos.

It is reported that these AI computers not only improve the efficiency of artificial intelligence tasks, but also provide users with a more convenient office experience. On the one hand, Dell hopes to attract more users and improve the company's long-term weak business by introducing these features. On the other hand, as a major supplier of computing infrastructure for governments and enterprises, Dell has partnered with NVIDIA with the intention of popularizing generative AI technology to every enterprise globally, driving the growth of both companies' businesses and the promotion of AI applications.

Dell CEO Michael Dell said in an interview:

"Don't you want to buy a PC that can perform AI tasks in the future? I think you will. AI will be everywhere in the future, and all of our new computers will be AI computers. Although AI-optimized computers will initially appear as 'higher-end' products, they will 'quickly dominate the mainstream market.'"

" This year, we will deliver a large number of new computers in bulk, and we expect that by next year, these AI computers will become standard configurations."

AI Computers May Promote Dell's Revenue Growth

Data shows that in the past two years, the demand for computers has dropped significantly, mainly because consumers, businesses, and schools purchased a large number of laptops in the early stages of the epidemic but have not upgraded them yet. Therefore, computer manufacturers have shifted their focus and are trying to find new drivers to boost hardware growth.

Against this backdrop, with the rise of mainstream chatbots and generative AI tools, the demand for high-performance personal computers with embedded AI is increasing, and Dell and other computer manufacturers see the huge potential of AI computers in stimulating market demand. Dell's keen insight into this point has led to a strong entry into the AI computer market.

Some analysts are optimistic about the future growth of AI computers. According to industry research firm IDC, global computer shipments achieved growth for the first time since the end of 2021 in the first quarter of this year. IDC analyst Jitesh Ubrani wrote, "With the increase in shipments, the prices of AI computers are also expected to be higher, providing additional growth opportunities for computer and other component manufacturers." Not only focusing on personal computer business, investors are now paying more attention to Dell's server business, as Dell's high-performance servers are able to handle AI workloads, leading to rapid demand growth. Dell revealed that benefiting from the strong growth in AI servers and storage business, as of February, Dell's server backlog orders reached as high as $29 billion.

Previously, Morgan Stanley analyst Erik Woodring pointed out that the company's growth in AI servers and storage business exceeded previous expectations. Evercore ISI analyst Amit Daryanani mentioned last week that Dell has won "a significant portion of the business" in Tesla's AI server expansion project.

NVIDIA and Dell collaborate to promote AI technology, helping companies establish an "AI factory"

Investor interest in Dell largely depends on its partnership with NVIDIA.

Firstly, both NVIDIA and Dell have stated that they have a cooperative relationship. For example, Morgan Stanley's Woodring last week referenced a video of NVIDIA CEO Jensen Huang promoting its hardware capabilities as proof of the relationship between the two companies. Huang stated: "If you need any IT, computing, or enterprise services, you know who to contact, and that's Dell."

Dell also confirmed its collaboration with NVIDIA, stating: "This is a very good collaboration, I can testify to that. The new computing era requires 'a variety of new infrastructure and capabilities.' While collaboration with NVIDIA is crucial, there are also other partners, and we will continue to expand new partnerships."

Secondly, at Dell's annual conference, NVIDIA CEO Jensen Huang announced: "Collaboration with Dell Technologies will drive the popularization of AI technology, helping more companies and organizations create an 'AI factory.' Our goal is to bring generative AI technology to every company globally, not just providing hardware devices, but also providing a complete complex AI infrastructure to make it easier for businesses and government agencies to use AI technology."

Analysis indicates that popularizing generative AI technology to every company globally will greatly promote the business growth of both companies, hence the need for strategic cooperation.

Specifically, to get AI systems up and running, AI technology requires not only powerful hardware (such as processors) but also corresponding software, storage, and network resources. Dell is a major supplier of computing infrastructure to governments and enterprises. Dell already has experience in providing computers, storage devices, and network resources to these institutions.

While NVIDIA's products (such as graphics processors) are popular in the market, they mainly rely on large data center operators (such as Microsoft, Meta, Amazon, and Google) as customers. Through collaboration with Dell, NVIDIA can reach more companies and government agencies, customer groups that NVIDIA has not directly reached before.

At the same time, NVIDIA is a leading manufacturer of processors for AI workloads, which helps Dell ensure access to the high-performance chips needed From the stock price performance, both NVIDIA and Dell have seen a significant increase in their stock prices this year. As of last Friday's close, the stock prices of NVIDIA and Dell have both risen by approximately 90%