AI-Optimized Personal Computers Will Be Standard by 2025, Says Michael Dell


May 20 Dell Technologies Inc. is launching a new line of personal computers optimized for artificial intelligence tasks, aiming to rejuvenate its struggling business. CEO Michael Dell stated in an interview that these AI PCs will be delivered in volume this year and will become standard by 2025.

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AI PCs, equipped with neural processing units (NPUs), are designed to accelerate AI tasks such as running chatbots. Dell’s new laptops, unveiled during its annual conference, will feature NPUs made by Qualcomm Inc. and a dedicated key for Microsoft Corp.’s AI Copilot service, which uses generative AI to automate business tasks like summarizing documents and writing memos.

The computer market has experienced a significant decline in demand over the past two years, as many consumers and businesses have not upgraded their early pandemic purchases. Dell and other manufacturers see AI PCs as a way to revitalize demand, with Dell executives predicting these advanced PCs will quickly become mainstream.

“Do you want to buy a PC that is not capable of doing those AI things that you’ll want to do in the future? I don’t think so,” said Michael Dell.

Global computer shipments saw their first increase in the first quarter since the end of 2021, according to industry research firm IDC. AI PCs are expected to carry higher price tags, providing further opportunities for PC and component makers. IDC analyst Jitesh Ubrani noted the potential for growth in this sector.

“All our new PCs will be AI PCs,” Michael Dell reiterated in an interview with Bloomberg Television. Competitor HP Inc. also unveiled new AI PC models at a Microsoft event on the same day.

While Dell is renowned for its PCs, investor interest has recently shifted to its server business, which has seen a resurgence due to high demand for AI-capable equipment. Dell has already provided AI infrastructure to hundreds of enterprise customers and had a $2.9 billion backlog for servers as of February.

Dell shares have surged 95% this year, reaching a record high after Morgan Stanley analyst Erik Woodring highlighted the company’s momentum in AI server and storage businesses. Evercore ISI analyst Amit Daryanani also reported that Dell had secured a significant portion of Tesla’s AI server buildout.

Much of the investor excitement centers on Dell’s partnership with Nvidia Corp., the leading maker of AI processors. A viral clip of Nvidia CEO Jensen Huang praising Dell’s capabilities has further fueled investor confidence.

“It is a good arrangement, so I can attest to that,” Michael Dell said about the Nvidia partnership. He emphasized the need for new infrastructure and capabilities in the evolving era of computing, noting the importance of partnerships beyond Nvidia.

–With assistance from Ed Ludlow.

OyinyeChukwu Paula
OyinyeChukwu Paulahttp://Vetiva%20Research
OyinyeChukwu Paula Position: Business Journalist, Naija247news OyinyeChukwu Paula is an accomplished business journalist contributing her expertise to Naija247news, one of Nigeria's leading news platforms. With a keen interest in economic affairs, financial markets, and corporate developments, Paula brings a wealth of knowledge to her reporting, delivering insightful analyses on the dynamic business landscape in Nigeria and beyond. Education: Paula holds a degree in Journalism from [Abia State University], where she honed her skills in investigative reporting and business journalism. Her academic background laid the foundation for her commitment to delivering accurate and timely news with a business-focused perspective. Professional Experience: Having amassed experience in the field, Paula's journalistic journey has been marked by a dedication to uncovering stories that impact the business community. Her work spans interviews with key industry figures, coverage of market trends, and in-depth analyses of economic policies. Areas of Expertise: Financial Markets: Paula provides comprehensive coverage of financial markets, offering insights into stock movements, currency fluctuations, and economic indicators. Corporate Affairs: With a focus on corporate activities, Paula delves into mergers and acquisitions, financial reports, and the strategies employed by leading companies. Economic Policy: Keeping a watchful eye on government policies, Paula explores their implications on businesses and the broader economy, providing readers with a nuanced understanding of economic developments. Contributions to Naija247news: Paula's bylines at Naija247news reflect her commitment to delivering quality journalism. Whether unraveling complex financial narratives or simplifying intricate economic concepts, she ensures that her audience is well-informed and empowered. Passion for Business Journalism: Beyond the newsroom, Paula is known for her passion for business journalism's role in fostering transparency and accountability. She believes in the power of information to drive positive change and economic growth. In a media landscape marked by rapid changes, OyinyeChukwu Paula stands out as a dedicated business journalist who continues to shape the discourse on economic matters, contributing significantly to Naija247news's mission of delivering credible and impactful news.

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