DELL TECHNOLOGIES INC CLASS C

Investments in Artificial Intelligence and Data Center Efforts

• Performance in AI:

  • Shipped $2.9 billion of AI servers in Q3, leading to an AI server backlog of $4.5 billion.
  • The five-quarter pipeline for AI grew more than 50% sequentially, indicating strong demand and expansion.

• Enterprise Customer Engagement:

  • Over 2,000 unique Enterprise customers since the launch, showing traction with both large and small Enterprises.
  • Enterprises are increasingly recognizing the disruptive nature and innovation opportunities presented by GenAI, thus engaging in experimentation and proof-of-concept initiatives.

• Innovative Infrastructure:

  • Launched a range of products aimed at enhancing AI capabilities, including:
    • 21-inch ORv3 Integrated Rack 7000 designed for multi-generational and future-proof AI infrastructure.
    • GB200 NVL72 server racks, featuring up to 72 GPUs per rack and capable of direct liquid cooling.
    • IR5000 design that can accommodate up to 96 GPUs per rack in a 19-inch traditional rack format.

• Engineering Capabilities:

  • Emphasis on high-value engineering to meet specific customer needs, allowing for custom designs and fast deployments.
  • Integration of power management, cooling systems, networking solutions, and storage capabilities to create holistic data center solutions.

• Market Trends and Growth:

  • Noted a 34% year-over-year growth in ISG (Infrastructure Solutions Group) revenue.
  • Significant growth has also been witnessed in Traditional servers, driven by a focus on consolidation and power efficiency in modernized data centers.

Outlook and Strategic Positioning

• The opportunity in AI is characterized as immense, with a strong belief in Dell's capability to leverage engineering expertise and broad solution offerings.
• Growing interest in AI-enabled architectures and application development is seen as a tailwind for future growth.
• Overall, Dell Technologies is positioning itself to capitalize on the extensive demand for AI infrastructure and technology advancements moving forward.