Dell's 1,000 New AI Server Clients and the On-Prem Token Economics Shift | Ep. 305

Added: 2026-06-02

[00:00:00]Let's bounce over to Dell Technologies world. What stood out to me?

[00:00:03]I'd say a couple things. One is the thousand new AI server clients in a single quarter.

[00:00:09]What a tremendous growth number. The revenues and backlogs are just incredible. Insatiable demand and this company um has you know, they kind of led the way in this whole AI factory narrative. You know, now you see all the OEMs have kind of followed suit with their own version of the story. You know, the other thing is I would say the the bringing AI on prem. They of course had the distribution deal with Google to bring you know, Google on prem. That was about a year ago. That that kind of hit. But now they're talking about with Gemini, with Open AI, with Grok um I wouldn't be surprised if Anthropic follows, Palantir, ServiceNow. Basically bringing the AI factory on prem to bring token economics to a price point where you pay for the infrastructure, you deliver your tokens at whatever the cost is to run your infrastructure. But the premium is wiped out. And I think that's kind of the underlying story right now as we pivot from is AI important and useful to holy crap, it's super useful and we want to do everything we can with it to scale our productivity and business. How do we do this economically and soundly? And I think large enterprises are going to have a very hybrid architecture. I think they're going to have bring a lot of uh AI infrastructure on prem and they're going to want to deliver tokens at the lowest possible cost. And it seems that Dell's on the on the on the front foot in terms of offering this to the market.