DELL Technologies, a renowned multinational technology company, has been expanding its influence in the artificial intelligence (AI) market. This ambition has been significantly bolstered by a recent US$150 million agreement with Imbue, an AI startup, according to Bloomberg. Under this deal, DELL is set to provide crucial computing hardware to Imbue, marking a significant step for DELL in strengthening its position in the burgeoning AI sector.
Imbue, a company that recently secured US$200 million in funding from various firms, including Nvidia, is at the forefront of AI development. It stands out as one of the few AI startups that are building their own AI foundation models from the ground up. This process is resource-intensive, necessitating a substantial amount of computing power for data processing and the development of models capable of advanced reasoning. The partnership with DELL, providing servers for these tasks, is a strategic move for Imbue, enabling the startup to handle the large volumes of data essential for its AI systems.
“We’re interested in supporting all of the vibrant innovation that’s going on in this space,” said Matt Baker, senior vice president of AI strategy at Dell, in an interview. “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 rivalling the arrival of the Internet.”
In contrast to the trend of cloud computing deals and partnerships observed among major tech companies like Microsoft, Alphabet’s Google, and Amazon.com with AI startups, DELL’s approach differs. While others offer cloud services to AI startups, DELL has positioned itself as a provider of physical computing hardware. This strategy aligns with DELL’s communication to investors that its server business is well-placed to benefit from the increasing demand for AI capabilities. The agreement with Imbue is also a testament to the startup’s preference for a more economical and flexible arrangement, allowing it to maintain independence and avoid over-reliance on larger tech corporations. For Imbue, this means direct access to computing resources without the constraints often associated with big cloud providers.
Featured image: Credit: Imbue
