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Dell expands AI portfolio with high-performance Nvidia servers
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Dell is aggressively expanding its AI server lineup with new Nvidia Blackwell Ultra-powered systems that promise significant performance improvements for AI workloads. The announcement comes as Dell navigates a competitive server market where high production costs and intense competition are putting pressure on profit margins. This hardware push represents Dell’s strategic bet on the continued growth of enterprise AI infrastructure, even as the company faces market headwinds.

The big picture: Dell has unveiled new servers powered by Nvidia’s Blackwell Ultra chips, designed to accelerate AI model training by up to four times compared to previous models.

  • The servers support up to 192 Nvidia Blackwell Ultra chips as standard, with customization options allowing for up to 256 chips.
  • Both air-cooled and liquid-cooled variations are available, catering to different deployment environments and cooling requirements.

Behind the numbers: Dell’s Infrastructure Solutions Group is navigating a challenging financial landscape despite the AI server boom.

  • The company forecast a decline in adjusted gross margin rate for fiscal 2026 in its February guidance.
  • Similar challenges face competitor Super Micro Computer, which recently projected fourth-quarter revenue below analyst estimates, citing tariff-driven economic uncertainty.

What they’re saying: “There’s a lot of interest on what’s next,” Arthur Lewis, President of Dell’s Infrastructure Solutions Group, told Reuters, while noting the pricing for these high-performance systems would be “competitive.”

Strategic pivot: Dell plans to increase sales of networking and storage products alongside servers to maintain profitability.

  • This diversification strategy aims to ensure the “right level of profitability” according to Lewis, suggesting Dell recognizes that server hardware alone may not deliver sustainable margins.
  • The company’s servers will support Nvidia’s upcoming Vera CPUs, which will succeed the Grace server processor, and later the Vera Rubin chips set to follow the Blackwell series.

Beyond the data center: Dell also introduced a ‘Pro Max Plus’ laptop designed specifically for AI development.

  • The laptop features a neural processing unit that allows engineers to develop and process large AI models directly on the device.
  • This on-device capability reduces reliance on cloud services, potentially providing cost and performance advantages for AI developers.
Dell unveils new AI servers powered by Nvidia chips to boost enterprise adoption

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