‘At some point there’ll be too many’ AI data centers

Dell Technologies CEO Michael Dell said on Tuesday that the demand for computer power is “tremendous”, but your production artificial intelligence Data centers will eventually reach the summit.

Dell, “closing bell: overtime” in “I’m sure I’m sure it will be built too much than these things, but we do not see any signs of it,” he said.

Dell said that the server network business of the hardware manufacturer increased by 58 %last year and 69 %in the last quarter. As the large language models turned into more modern and multi -mediated systems, the demand for artificial intelligence processing power and capacity continued to be strong.

Supported by Dell’s artificial intelligence servers NvidiaBlackwell Ultra chips. The company then sells its devices to customers such as cloud service provider. Coreweave And Elon Musk’s initiative XAI.

Dell shares rose to over 3 %on Tuesday after increasing the expected long -term income and profit increase at an analyst meeting.

The computer manufacturer increased the expected annual income increase from the previous 3 to 4 %target to 7 %to 9 %; Diluted shares are now expected to be 15 %higher than the previous 8 %target.

In August, the company reported a strong second quarter gain and said it plans to send an artificial intelligence server worth $ 20 billion in 2026 financially. This is twice that he sold last year.