This deal is significant for Dell as it seeks to expand its presence in the AI market. Over the past year, tech giants like Microsoft Corp., Alphabet Inc's Google, and Amazon.com Inc. have been actively partnering with AI startups through investments and cloud computing deals. Despite being a smaller provider in the field, Dell has been informing its investors that its server business is set to benefit from the growth in AI.
Key takeaways:
- Dell Technologies Inc. has secured a $150 million deal to provide computing hardware to AI startup Imbue, marking a significant win in its efforts to expand its presence in the AI market.
- Imbue, which recently raised $200 million in funding from firms including Nvidia Corp., is using Dell's servers to process large volumes of data necessary for the development of its AI systems and advanced reasoning models.
- Imbue is among a few AI startups that are building their own AI foundation models from scratch, a task that requires substantial computing power.
- While tech giants like Microsoft, Google, and Amazon have been actively partnering with AI startups through investments and cloud computing deals, Dell is a smaller provider in the field but believes its server business stands to gain from the growth of AI.