Much has been reported and made about Blackwell. A delay or no delay? I guess the starting point is to ask you, Arthur, if this was a surprise to you that you were able to adjust or pivot and then ship next month unexpectedly? No, not unexpected at all. You know, we've been working on this very, very hard. If you think about the innovation that we've been delivering, you know, from the start of the 96, 82, you know, what we announced to Dell Technologies world from skilled infrastructure. You know, we talked about the fact that Grace Blackwell product was, you know, on the roadmap and, you know, would be heading for customer testing in the second half of this year with general availability coming next year. So we're just following through on the commitment that we made back at the beginning of this year. So the last three months of the year, calendar year, are going to look a lot

better for Dell now, aren't they? Yeah, we have some really exciting products. You know, customers are facing density and power constraints in terms of these large, you know, rack infrastructure. And so we have three, you know, significant product announcements that we had today at OCP. You know, number one is the Z 9712, which is the, you know, Grace Blackwell's 72 and Nvlink ink form factor. This product air cooled is 25 times more efficient than the 100. But in addition to that, we're bringing density to compute. We also announced a Turin based R&D system all direct to chip liquid. Cool. That does two amazing things. Number one, it solves a density problem by providing 27,000 cores, Iraq. And secondly, it's highly performant, up to 60 times faster than the previous generation. The industry industry wide are not making margin on this. Are you going to make margin on this? And if so, how?

Yeah. So I think, you know, we showed that we were able to make margin in Q2, achieving 11% operating income for the overall ISG business. You know, our job is to remove the shroud of complexity and mystery around generative AI and deliver value to customers, and we will be rewarded for that value in the Tier two CSP space, as well as in the enterprise space, where we have even more opportunity to attach more of our service and storage offerings and networking offerings. It was interesting what you were talking about there on the air cooling side. Everyone keeps asking me about liquid cooling. What is the Dell position on liquid cooling? BLACKWELL Right. You were sampling the technology before you shipped it, and you must have thought a little bit about a pivot to liquid cooling, perhaps. We've been talking about liquid cooling since the beginning. You know, we have air cooling, liquid-assisted cooling, rear door heat exchangers, heat capture cabinets, and

direct a chip liquid cooling. You know, once you get into the 1000-watt TDP range, this is where direct chip liquid cooling is absolutely mandatory. But we have a wide variety of offerings that span the air cooling, the liquid-assisted air cooling, the heat capture cabinet, the rear door heat exchangers, as well as the direct chip liquid cooling. Not all environments are ready to support liquid cooling, but our portfolio is comprehensive and broad and supports all of the requirements that customers have to deliver the most dense and energy-efficient infrastructure in the market offer. Before we let you go, give us insight into the reality of black. Well, volumes, this is small, right? Or is there some actual scale here to production? Look, our volumes is, you know, contemplated in the guidance that we provided at the end of Q2. If we have any update to that guidance, we'll update that in Q3.

But, you know, we're very excited about the amount of innovation that's being driven in this space. If you think about where we were at the beginning of the year, we were talking about rack infrastructure with 62, 64, and 72 GPUs. Now we're up to 96 and 128 GPUs, and we're talking about, you know, scalable systems. I mean, think about this. Had 768 GPUs interwoven to operate as one system with integrated networking for maximum throughput. It's just amazing what we're seeing.

Dell Ready to Ship Servers With New Nvidia AI Chips

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