Nvidia, Dell announce major project to reshape AI originally appeared on TheStreet.

I believe that the universe always keeps things in balance. For every positive thing, there is a negative, and vice versa.

Imagine working as a teacher for a moment. The world has changed, and suddenly everyone has access to artificial intelligence. Are your students using ChatGPT to do their homework? Absolutely. Would you like to be in that teacher's shoes? I know I wouldn't.

What if this AI revolution turns out to be a tragedy like the use of leaded petrol, which is suspected to have lowered the IQ of Americans born in the 1960s and 1970s?

While AI advances could potentially extinguish future scientific minds, today's scientists use powerful computers to deliver scientific breakthroughs.

Google's AlphaFold, a program for protein structure prediction, had already made breakthroughs in 2018 before the advent of agentic AI.

In 2024, its authors Demis Hassabis and John Jumper were awarded one-half of the Nobel Prize in Chemistry, the other half went to David Baker for his work on protein design. Baker wasn't doing his research on pen and paper either; he relied on the National Energy Research Scientific Computing Center’s Perlmutter supercomputer to do his work.

Now, Dell is working on something for those for whom Perlmutter isn’t good enough.

Dell's AI-optimized servers are in great demand

Dell Technologies  (DELL)  released its earnings report for Q1 Fiscal 2026 on May 29. Here are some of the highlights:

• Revenue of $23.4 billion, up 5% year over year

• Operating income of $1.2 billion, up 21% YoY

• Diluted EPS of $1.37, flat YoY,

“We achieved first-quarter record servers and networking revenue of $6.3 billion, and we’re experiencing unprecedented demand for our AI-optimized servers. We generated $12.1 billion in AI orders this quarter alone, surpassing the entirety of shipments in all of FY25 and leaving us with $14.4 billion in backlog," stated Jeff Clarke, vice chairman and chief operating officer of Dell.

Most of that backlog consists of complex systems built using Nvidia  (NVDA)  Blackwell chips.

Related: Dell execs sound alarm with consumer comments

While Dell is leaning heavily on Nvidia, Nvidia is looking for ways to minimize losses caused by new government policies that require a license to export its H20 chip to China.

As TheStreet's Samuel O'Brient reports, Nvidia could not ship an additional $2.5 billion worth of H20 products during Q1 because of the restrictions. On top of that, Nvidia expects the H20 licensing requirement to result in an $8 billion revenue hit during Q2.