May 19 (Reuters) - Dell Technologies ( DELL ) on Monday
unveiled new servers powered by Nvidia's ( NVDA ) Blackwell
Ultra chips, aiming to capitalize on the booming demand for
artificial intelligence systems.
The servers, available in both air-cooled and liquid-cooled
variations, support up to 192 Nvidia Blackwell Ultra chips but
can be customized to include as many as 256 chips.
These servers can train AI models up to four times faster
than previous models, Dell said.
The pricing of these products will be "competitive," Arthur
Lewis, President of Dell's Infrastructure Solutions Group, told
Reuters, adding that "there's a lot of interest on what's next."
Dell and Super Micro Computer ( SMCI ) have benefited from
the growing demand for servers designed to handle the
computer-heavy AI tasks, but the high cost of producing the
systems and tough competition have pressured their margins.
Dell in February forecast a decline in adjusted gross margin
rate for fiscal 2026, while Super Micro projected fourth-quarter
revenue below estimates earlier this month as tariff-driven
economic uncertainty pressures its performance.
Dell will focus on increasing sales of networking and
storage products to ensure the "right level of profitability,"
Lewis said.
The company's new servers will also support Nvidia's ( NVDA )
upcoming Vera central processing units, which will succeed the
chip designer's Grace server processor.
The AI server maker plans to support Nvidia's ( NVDA ) Vera Rubin
chips, set to follow the Blackwell series.
Dell also introduced a 'Pro Max Plus' laptop designed for AI
development on Monday, featuring a neural processing unit that
allows engineers to process large AI models directly on the
device without relying on cloud services.