Dell Technologies Inc. has finalized a $150 million deal to supply computing hardware to Imbue, an artificial intelligence startup. This achievement represents a notable success for the laptop maker as it extends its presence in the highly competitive AI market.
As part of the agreement, Dell is providing Imbue with servers crucial for processing the vast amount of data necessary for the development of AI systems and the creation of models with advanced reasoning capabilities.
Supported by a recent $200 million funding round that includes companies such as Nvidia, Imbue distinguishes itself among a limited cohort of AI startups actively involved in the ambitious undertaking of building their own AI foundation models entirely from scratch. This challenging task necessitates significant computing power.
Compared with AI tech giants such as OpenAI, Microsoft, and Google, Dell is a much smaller provider in the field, but it has been convincing its investors that its server business will greatly benefit from AI technology.
The senior vice president of AI strategy at Dell, Matt Baker, said:
We’re interested in supporting all of the vibrant innovation that’s going on in this space. The entirety of our business is pivoting to support what we believe is a once or twice in a lifetime opportunity. The innovation that generative AI is driving is rivaling the arrival of the internet.
Unlike many notable cloud arrangements between major tech corporations and AI startups, Imbue has opted for a deal that directly purchases computing hardware instead of depending on cloud services.
Imbue has highlighted that this agreement with Dell offers a more economical solution compared to acquiring computing services from a prominent cloud provider. Additionally, it grants the startup greater flexibility, diminishing reliance on any single large tech company.
