Dell Strikes $150 Million Deal With AI Startup Imbue to Accelerate Innovation

In a move to expand its footprint in the fast-growing artificial intelligence market, Dell Technologies has inked a $150 million deal with AI startup Imbue. Through the partnership, Dell will provide Imbue with server hardware to power its advanced AI research and development efforts.

As one of the ambitious AI startups developing new foundation models from scratch, Imbue requires massive computing resources to process huge amounts of data. Dell sees this as a prime opportunity to support innovation in the AI sphere and push its own server business forward.

While tech giants like Microsoft, Google and Amazon have primarily partnered with AI startups through cloud deals and investments, Dell is taking a different approach. Imbue will purchase computing hardware upfront rather than renting cloud services – an arrangement that offers more flexibility and independence compared to relying on a single large provider.

Custom-designed clusters from Dell will allow Imbue to rapidly experiment with new AI techniques on smaller systems. Larger clusters are also optimized for building out foundation models at scale. Imbue co-founder Josh Albrecht noted the Dell partnership lets the startup avoid being “locked into” any single cloud provider that could hinder future software development.

By inking this deal, Dell signals it can also meet the demanding computing needs of pioneering AI businesses. As generative AI takes off, Dell aims to pivot its entire business to support this once-in-a-lifetime shift – showing new opportunities exist beyond just public clouds. The partnership could accelerate innovation at both Imbue and Dell as AI reshapes technologies.