Dell Technologies founder and chief executive Michael Dell says global demand for AI infrastructure remains strong as multiple sectors move deeper into adoption.
In a new CNBC interview, Dell says customer adoption across cloud, enterprise, and government segments points to steady expansion.
“But based on the demand signal we see and what we’re hearing from customers, we’re watching carefully, understanding what’s going on. It seems like the [AI] demand is very solid.”
Dell describes the adoption wave as one of the most significant industrial shifts since the early internet, saying enterprise and government customers are only beginning to realize how deeply AI will embed across infrastructure and productivity systems.
Looking at Dell itself, the tech executive notes three main drivers powering the company’s AI pipeline.
“With AI, we have really three sources of demand. We have the tier-two CSPs (cloud service providers), all the neo clouds. We have sovereign AI, and then we of course have enterprise and commercial AI, which is our traditional customer base. And they’re just at the beginning of the S-curve adoption of this technology. And we think that’s going to grow substantially over the next several years.”
But amid accelerating adoption, Dell warns that the pace of AI expansion faces physical limits, particularly around energy availability and efficiency.
“And I think [energy is] certainly one of the big constraints. What we can do is engineer these systems so they just use as little power as possible. But at the end of the day, if you’re going to generate tens of trillions of tokens and you’re going to create intelligence and drive the economy forward, you’re going to need computing power and energy.”
Last week, billionaire Chamath Palihapitiy sounded the alarm on what he calls an overlooked risk of the AI boom: energy. Palihapitiya said the rise of AI infrastructure — from hyperscale data centers to server farms — is already straining local grids and driving public resistance to new builds.
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