Dell deepens AI push with new PCs, Nvidia-powered servers

FILE PHOTO: 3D printed clouds and figurines are seen in front of the Dell logo in this illustration taken February 8, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

(Reuters) -Dell Technologies unveiled a range of AI-enabled PCs powered by Qualcomm processors and said a new server which supports Nvidia's latest chips will be available from the second half of 2024.

Dell made the announcements at an event in Las Vegas on Monday, aiming to maintain momentum in the lucrative market for artificial intelligence servers and bracing for an expected recovery in the PC market this year after a post-pandemic slump in orders.

Its AI-capable PCs will come with the Qualcomm Snapdragon X series chips that feature neural processing units(NPUs) dedicated to processing complex AI tasks.

Two of the five new PCs can be pre-ordered starting Monday, with the rest to be made available in the coming months.

The launch comes on the same day as that of Microsoft's annual Build event, where Chief Executive Satya Nadella introduced the so-called "Copilot+" PCs, counting Dell, Qualcomm, Intel and Advanced Micro Devices among the partners that would help build them.

Qualcomm's shares rose close to 2% to hit a record high while Dell's shares were down about 2.6%.


Dell on Monday also launched the latest in its line of servers compatible with Nvidia's Blackwell chips. The new server also offers liquid cooling technology, as opposed to air cooling, which tends to consume more power.

Arthur Lewis, president of the company's infrastructure solutions group, told Reuters in an interview that Dell's Nvidia-based servers were the fastest ramping product in its history.

Spending on AI servers is expected to surpass $33 billion in 2024, according to research firm International Data Corporation (IDC).

With a significant amount of spending coming from relatively smaller companies that are still in the early stages of adopting new technologies, Lewis said Dell does not expect AI investments to significantly hit companies' expenditure on traditional servers.

This contrasts the wider market which has seen uncertain demand for traditional servers as enterprises prioritize spending on speedy AI servers.

Dell is going to report quarterly earnings on May 30, with analysts expecting both AI PCs and AI servers to help demand for the company's products.

(Reporting by Jaspreet Singh and Arsheeya Bajwa in Bengaluru; Editing by Maju Samuel and Shailesh Kuber)

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