Half a million firms still rely on outdated IT, need AI shift: Jensen Huang

Dell technologies founder Michael Dell and Nvidia co-founder & CEO Jensen Huang

Nvidia CEO Jensen Huang said more than 5,00,000 enterprises using old information technology and data centres are in need to transition to the artificial intelligence (AI) world, emphasising on the market opportunity and demand coming from the global AI boom.

Huang was in conversation with Dell Technologies founder and CEO Michael Dell, at Dell Tech World 2025 in Las Vegas on May 19.

"We've known each other for 30+ years. We met during the PC revolution and then we saw the internet come and then we saw the cloud come and now the AI is here. This is unquestionably the single biggest platform shift and we talk about how every single layer of the tech stack, of the computing stack is getting reinvented," Huang told Dell.

He added, "So it stands to reason for 5,00,000 enterprise companies around the world which have built their IT and data centers over the last 30 years -- is built in the old way and it needs to be somehow brought into the world of AI."

Nvidia and Dell have a 30-year partnership and last year they launched a comprehensive AI solution named Dell AI Factory.

Dell shared that over the past year, AI Factory has added over 3,000 customers enabling nearly 60 percent cost saving for on-premise cloud as compared to the public cloud.

At the event, Dell announced that it is expanding its partnership with Nvidia to launch a slew of upgrades for AI Factory.

"We are introducing the next generation of AI-optimized servers, the Dell PowerEdge XE9780L and 9785L. Each holds eight B300 accelerators with four times faster training of LLMs and 11 times more brain-fencing and direct-to-chip computing, supporting 256 GPUs in a single round," Dell said.

Apart from server innovations and energy efficiency solutions, AI Factory will also see 100X increase in tokens per second for distributed AI inferencing.

"We're teeing up for one of the largest opportunities ahead of us, which is enterprise AI. These are companies that are essentially building a digital workforce of AI agents and these AI agents could be working in cybersecurity, software engineering, marketing, sales operations, forecasting and supply chain management. All these different AI agents are being created now that can augment our human workforce with a digital workforce," said Huang.

He added, "Also, some enterprise want to bring these AI agents in the cloud, but many of them want to do it on-prem.”

Last month, both Huang and Dell had briefly dropped out of the $100-billion club of Bloomberg Billionaire Index after a tough quarter at the stock market caused in part by US President Donald Trump's aggressive tariff policies which led to dampened investor confidence.

(This reporter is in Las Vegas at the invitation of Dell Technologies.)