Nvidia's expansion plans depend on getting agencies and companies to develop their own AI capabilities and driving demand for its products.
 "Partnership with Dell key to company's AI expansion drive: Nvidia CEO Huang")
bloomberg
Written by Ed Ludlow and Ian King
Nvidia Corp. Chief Executive Officer Jensen Huang said the partnership with Dell Technologies Inc. will help bring artificial intelligence to a broader range of customers and help businesses and organizations build their own “AI factories.” .
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“We want to bring this generative AI capability to every company in the world,” he said in an interview on Bloomberg TV in Las Vegas, where Dell is holding a conference. “It's not just about delivering a box, it's about delivering the entire infrastructure. It's a very complex infrastructure.”
Dell is one of the largest providers of computing infrastructure to government agencies and businesses, a market not directly served by Nvidia. Nvidia's revenue has soared over the past year, but that growth has relied primarily on a small number of customers: data center operators known as hyperscalers. Microsoft Corp., Metaplatforms Inc., Amazon.com Inc. and Alphabet Inc. are its biggest customers, with Dell a close second, according to data compiled by Bloomberg.
Nvidia's expansion plans depend on getting agencies and businesses to develop their own AI capabilities and drive demand for its products, which Huang said will require the storage, networking and computing that Dell provides, making it an essential partner.
The CEO is pushing Nvidia deeper into software tools, computer design and AI models, helping spread the company's technology into everything from drug discovery to shipbuilding. Michael Dell, who also spoke on Bloomberg TV, said NVIDIA was successful because it prepared for the transition to AI and innovated ahead of all competitors.
Nvidia shares, which have risen more than 90% this year, rose 2.8% to $951.07 in New York trading on Monday. Dell, which is also up about 90% this year, fell 2.3% to $146.06.
Nvidia, the most valuable tech company after Microsoft and Apple Inc., is scheduled to release its latest earnings on Wednesday. Analysts estimate that sales rose 243% last quarter. The company's revenue has been increasing very rapidly, and now he Nvidia earns almost as much in a quarter as he did in a year just two years ago.
Dell, the leading computer manufacturer, on Monday announced a new series of PCs optimized for AI tasks. Nvidia, meanwhile, is the biggest seller of so-called AI accelerators, processors that are key to developing chatbots and other cutting-edge tools.
Nvidia currently sells graphics chips for PCs, but not central processing units (CPUs). Huang declined to say whether the company will eventually produce CPUs itself, which would put it in direct competition with Intel, Advanced Micro Devices and Qualcomm.
Before Huang could discuss the possibility of moving into that field, Michael Dell interjected and said, “Please come back next year.”
