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65% of Organisations Now Running AI in Production: Dell Executive

ByMegha Pathak
2025-05-26.3 months ago
65% of Organisations Now Running AI in Production: Dell Executive
Dell’s Varun Chhabra reveals that over 65% of global organisations have transitioned AI PoCs into production, signaling a new phase of enterprise AI adoption.

Over 65% of organisations have moved their AI proof of concepts (PoCs) into production in 2024, according to Varun Chhabra, SVP, ISG and Telecom at Dell Technologies. Speaking at Dell Tech World 2025 in Las Vegas, Chhabra attributed this growth to the AI inflection point following two years of experimentation with foundational models.

The data comes from an internal survey by Dell’s Chief Strategy Office, covering 3,800 organisations across the US, UK, Germany, Japan, and India. Chhabra noted that organisations now have clear AI strategies and roadmaps and are increasingly augmenting pre-trained models using their own data, leveraging technologies like Retrieval Augmented Generation (RAG).

He added that many large AI deployments are happening through cloud service providers like CoreWeave, offering GPU-as-a-service infrastructure. “Organisations want easy deployment and compatibility across ecosystems—but above all, a clear RoI,” Chhabra emphasized.

Also Read: India's AI Startup Landscape Propelling Change Across Major Industries: Envoy

Dell’s AI Factory Drives Growth

At the event, Michael Dell said the world will invest over $1 trillion in AI to power national and industrial prosperity. He added that AI could add $15 trillion to the global economy by 2030. Notably, 85% of enterprises plan to bring generative AI workloads on-premises within two years.

Launched last year with Nvidia, Dell’s AI Factory now serves 3,000+ customers, offering 60% savings on-premises vs public cloud and 20–40% productivity gains. It covers the full AI lifecycle and has partnerships with Microsoft, Hugging Face, Meta (Llama 4), Google (Gemini), ServiceNow, Red Hat, Cohere, and Mistral.

$5B Deal with xAI

In February 2025, Elon Musk’s xAI was reportedly preparing to purchase $5 billion worth of AI servers from Dell, featuring Nvidia’s GB200 GPUs, to be delivered later this year.

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