How AI factories are reshaping enterprise infrastructure – News

AI factories are accelerating a new phase of enterprise transformation, turning data into intelligence at large scale — and few leaders see this shift more clearly than Michael Dell, chief executive officer of Dell Technologies Inc.

As organizations race to operationalize AI, the notion of an “AI factory” has emerged — where data enters and intelligence is produced at scale, reshaping everything from supply chains to customer engagement. The next phase will be defined by the convergence of large-scale reasoning systems and intelligent edge devices, designed to deliver real-time insights with unprecedented precision. The future is not just cloud or edge — it’s both, working in tandem to power the knowledge economy, according to Dell (pictured).

“I think we’re just at this enormous speed-up moment for our species, and it’s the beginning,” Dell said. “When I look at how companies are able to unlock their data and accelerate their progress in everything that they’re doing, it’s just kind of amazing how fast this is happening.”

Dell spoke with theCUBE’s Dave Vellante and John Furrier at Dell Technologies World, during an exclusive broadcast on theCUBE, News Media’s livestreaming studio. They discussed AI factories, edge computing, enterprise adoption and the infrastructure needed to scale intelligent systems. (* Disclosure below.)

AI factories and intelligent edge: Building the next wave of compute

Michael Dell sees AI factories not just as a metaphor, but as an operational reality for modern infrastructure. These are systems purpose-built to process tens of trillions of tokens per month, requiring massive compute, data and software coordination. As demand shifts from training to inference and reasoning, deployment precision becomes even more critical.

“There was also this dirty little secret in the industry for a long time. What are we doing with all this data?” Dell said. “Well, now we have tools. We can do things with it. That’s why all this is happening.”

At the same time, the edge is becoming smarter, more efficient and a critical extension of these centralized capabilities. Dell described a future where computing power is everywhere — from laptops and cars to industrial sites and mobile devices — bringing AI closer to where data is generated and decisions are made.

“If we dial back the clock of computing 30 years, there’s always these debates on, where is the power going to be?” he said. “Where is the intelligence going to be? Is it going to be at the center? Is it going to be out there in the edge? What’s the answer? It’s both. It’s always both.”

The exponential increase in data volumes makes real-time processing essential. Dell noted that AI tools are finally catching up to the data deluge, enabling insights and automation that were previously out of reach. With global infrastructure ramping, Dell Technologies is deploying multiple hyperscale systems to meet enterprise needs.

“That example that I showed [during the keynote] of one of the large systems that we’re building, we’re actually building another one that is very similar in size. We’re deploying these right now,” Dell said. “What’s really interesting is a single system like that … would’ve been more tokens than the entire world would’ve produced not that long ago.”

Partner ecosystems and the democratization of AI

As the AI economy matures, so does its ecosystem. Dell Technologies is positioning itself as a foundational partner to a wide range of innovators — from hyperscalers to open-weight model providers to enterprise software firms. In just the past year, the company has launched around 100 new solutions, including reference architectures and turnkey blueprints to jump-start AI adoption.

“We need a lot more of those in every vertical in order for this to realize its potential,” Dell said. “But it’s definitely happening, and we’re seeing it.”

This diversity of use cases, partners and compute needs points toward an increasingly open and hybrid AI future. Eighty-five percent of enterprises plan to move AI workloads on-premises within two years, Dell pointed out. That demand is being driven by control, cost, performance and regulatory needs, especially as organizations look to bring AI into the core of business operations.

“Some of them are new partners, and some are old friends,” Dell said. “The global economy, roughly half of it is a knowledge economy. That’s roughly 30 or 40 trillion — nobody’s really quite sure. So, the idea of investing a trillion dollars to make the 30 trillion more competitive, more productive, that’s not actually very much.”

Ultimately, the impact of AI must be measured not just in compute cycles, but in the value it unlocks for businesses and communities, Dell emphasized. The goal is to use technology to push human progress forward.

“Technology enables human progress,” Dell added. “That’s kind of what we started with. We’re still on that journey, and I passionately believe that that’s what technology does. The progress that’s occurring in our world is pretty staggering, and it’s all enabled by technology. What more fun could there be than being in the center of all that?”

Stay tuned for the complete video interview, part of News’s and theCUBE’s coverage of Dell Technologies World.

(* Disclosure: TheCUBE is a paid media partner for Dell Technologies World. Neither Dell, the primary sponsor of theCUBE’s event coverage, nor other sponsors have editorial control over content on theCUBE or News.)

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