Dell (DELL.US) introduces servers with Nvidia (NVDA.US) Blackwell chips, to start shipping in November

One of the world's largest server sellers, Dell Technologies (DELL.US) will soon begin shipping devices with Nvidia's (NVDA.US) Blackwell AI accelerator, indicating that production of the chip has returned to its original schedule.

Dell's infrastructure chief Arthur Lewis said in an interview that the company will start shipping some customers its AI-focused servers with the Blackwell chip next month, with a full launch in early 2025.

The rollout of Nvidia's latest generation of advanced semiconductors for artificial intelligence has been closely watched by the industry and investors. Earlier this year, the plan was delayed due to engineering issues. In August, Nvidia CFO Colette Kress said the company had made changes to boost production of the Blackwell chip, with production speeds expected to pick up in November.

Dell is focusing on expanding its business selling high-performance servers for artificial intelligence workloads. On Tuesday, the company launched a series of new servers and other infrastructure products.

Investors are excited about the new growth engine for the company known for its PCs. Shares of Dell have risen 68% this year through Tuesday's close, and the company was added to the S&P 500 last month. Still, some analysts have expressed concerns about the profitability of Dell's AI products and its competitive position versus rivals such as Super Micro Computer (SMCI.US).

Lewis said Dell's differentiation comes from its existing relationships with customers and its broad portfolio of services and products. He added that's why the company was able to get its hands on Nvidia chips early.

Lewis said Nvidia CEO Jensen Huang wants his company's chips "as soon as possible." "You win the customer, you win the allocation."