Dell Technologies (DELL) has been investing heavily in AI, but as the technology grows rapidly, so does the competition. Arthur Lewis, president of Dell Technologies' Infrastructure Solutions Group, appears on Market Domination to discuss the company's competitive position in the AI space.
Lewis is confident that Dell's innovation efforts are “full steam ahead.” He lists consistent architecture, “designed with great networking capabilities,” and energy efficiency as three key “killer design points” that set the company's servers apart.
“Generative AI is a system that's made up of compute, networking and storage. There's only one company in the world that can provide a system that's optimized and tuned for AI, and that's us,” Lewis told Yahoo Finance.
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Video Transcript
Now, we welcome Arthur Lewis, president of the Infrastructure Solutions Group at Dell Technologies. Arthur, we apologize for the technical difficulties. What can I tell you about the magic of live broadcasting, Arthur?
I was asking Arthur about the competition, because my point was about Supermicro, you know, they're a name that's built around an AI practice, and they sell it at a relatively low margin.
Lenovo is also in the AI game, putting money into AI practices.
Arthur, I'm curious if you feel any competitive pressure there?
We are very committed to providing services on behalf of our customers.
Our innovation engine is running at full speed.
Well, I don't think we've ever run an engine that hot before. Thinking about the 9680, we had three key design points:
First, a consistent architecture, which allows for silicon diversity from GP, NVIDIA, AMD, Intel, etc., to provide superior networking capabilities and the densest, most energy-efficient design. We were able to deliver on all three of these requirements.
Well, we've done something even better with the 96 AD L, which is specifically designed for liquid cooling.
The first instance of this was the Blackwell 200, which increased density by 33%.
Energy efficiency has improved by 2.5%.
Networking capabilities have also been greatly improved.
We also offer enhanced fabric, Ethernet and financial protocol networking capabilities, and the world's largest storage portfolio, particularly in the unstructured space, including the Power Scale and F 910, which we announced at Dell Technologies World last week.
So when we think about serving customers and their needs, we see that generative AI is a system that consists of computing networks and storage.
There is only one company in the world that can provide a system that is optimized and tuned for AI, and that is us.
And I have the privilege of serving both tier 2 CS P customers and enterprise customers.
Arthur.
I'd like to ask you a little bit about your partnership with NVIDIA.
You make that point really outspokenly and it makes a lot of sense.
Jensen Wong has the coveted AI chip.
But on the other hand, Arthur, they are very expensive and supplies are limited.
I'm curious if that has had any impact on your sales.
This is not going to boost sales. We've been working with Jensen since they launched the first GP U in 1996.
They have been a very strong partner and a very strong collaborator for our AI factory.
Well, of course, we also partner with other providers such as AMD Intel and Broadcom.
Well, we don't actually put orders on hold.
It may delay the shipment.
But we have a very strong collaboration with NVIDIA.
I also want to talk about storage.
Um, it was flat, Arthur and I, yeah, I remember you mentioned seasonality.
My question is, if AI is the business driver, why is storage flat earther?
Yeah.
This means that the storage market typically lags server recovery by one to two quarters.
As a result, the storage market will begin to recover in the second half of the year.
Well, and that's factored into our guidance and part of why we raised our full year guidance is, you know, the vast majority of our customers are enterprise customers, but they represent a relatively small percentage of our revenue.
And as companies start to hire Arthur, we'll see a lot more storage strikes.
I'm really glad you appeared on the show.
We apologize again for the technical difficulties.
I look forward to seeing you again.
Thank you, Josh.
