Dell expands AI ambitions with new PCs and Nvidia-powered servers

Dell Technologies has announced a major expansion of its artificial intelligence (AI) offerings, unveiling a new line of AI-enabled personal computers (PCs) powered by Qualcomm processors and introducing servers compatible with Nvidia's latest chips.

The announcements were made at a high-profile event in Las Vegas, aiming to strengthen Dell's presence in the AI server market and capitalise on the anticipated recovery of the PC market this year.

The new AI-capable PCs will feature Qualcomm's Snapdragon X series chips, which include neural processing units (NPUs) specifically designed for handling complex AI tasks.

Out of the five new PC models, two are available for pre-order starting today, while the remaining models will be released in the coming months.

This launch coincides with Microsoft's annual Build event, where CEO Satya Nadella introduced the "Copilot+" PCs.

Dell is among the key partners, alongside Qualcomm, Intel, and Advanced Micro Devices (AMD), contributing to this initiative.

Following these announcements, Qualcomm’s shares saw a nearly 2 per cent increase, hitting a record high, while Dell’s shares experienced a slight decline of about 2.6 per cent.

In addition to the AI PCs, Dell revealed its latest server, which supports Nvidia's Blackwell chips and features advanced liquid cooling technology.

This new cooling method is more efficient compared to traditional air cooling systems, reducing power consumption.

Arthur Lewis, president of Dell's infrastructure solutions group, described the Nvidia-based servers as the fastest growing product in the company's history.

The AI server market is poised for substantial growth, with spending expected to exceed $33 billion in 2024, according to the International Data Corporation (IDC).

Dell anticipates that a significant portion of this spending will come from smaller companies still in the early stages of technology adoption.

Lewis mentioned that Dell does not foresee AI investments severely impacting expenditure on traditional servers, despite broader market trends showing a shift towards AI server spending over conventional servers.

Dell's quarterly earnings report, due on May 30, is eagerly awaited by analysts who expect that the new AI PCs and servers will drive increased demand for the company's products.

(With inputs from Reuters)