NVIDIA'S AI BOOM BRINGS RICHES TO PARTNERS LIKE DELL, AT A COST

Summary from the TLDR newsletter

Dell's $5 billion deal to supply servers to xAI is an immense win for the computer seller, but the deal only has a narrow margin of profitability. People familiar with the deal say that the deal is expected to yield gross margins only in the mid-single-digits percentage. Nvidia has expanded its product range, reducing opportunities for companies like Dell to bundle higher-margin items. The company's massive leverage is likely to continue at least until rival chipmakers launch competing products.