Saudi Arabia, China Strengthen Strategic Partnership in Digital Economy

The agreement was signed by Saudi Minister of Communications and Information Technology Eng. Abdullah bin Amer Al-Sawaha and the Chinese Minister of Industry and Information Technology, Wang Zhigang
The agreement was signed by Saudi Minister of Communications and Information Technology Eng. Abdullah bin Amer Al-Sawaha and the Chinese Minister of Industry and Information Technology, Wang Zhigang
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Saudi Arabia, China Strengthen Strategic Partnership in Digital Economy

The agreement was signed by Saudi Minister of Communications and Information Technology Eng. Abdullah bin Amer Al-Sawaha and the Chinese Minister of Industry and Information Technology, Wang Zhigang
The agreement was signed by Saudi Minister of Communications and Information Technology Eng. Abdullah bin Amer Al-Sawaha and the Chinese Minister of Industry and Information Technology, Wang Zhigang

Saudi Arabia has signed a strategic partnership with China for cooperation on the digital economy.

The agreement was signed by Minister of Communications and Information Technology Eng. Abdullah bin Amer Al-Sawaha and the Chinese Minister of Industry and Information Technology, Wang Zhigang, as part of the current official visit of Chinese President Xi Jinping to the Kingdom.

The partnership develops a framework for cooperation between the two countries, covering the fields of digital economy, communications and information technology, and promoting research and innovation on emerging technologies, in addition to improving aspects of communications infrastructure, and enabling the growth of digital entrepreneurship through emerging business models such as financial technology and e-commerce.

It also covers cooperation on artificial intelligence, advanced computing and quantum information technology, in addition to robots and smart equipment, and work to develop their technologies and applications for industrial and commercial purposes.

Moreover, this partnership memorandum aims at enhancing the two friendly countries' cooperation in the fields of the modern generation of mobile communications technology and emerging technologies.

Within the framework of this partnership, the two sides will also cooperate in the field of digital technology applications and radio frequency spectrum management, in addition to their cooperation in developing and building local capabilities in communication and data centers, developing digital platforms and cloud computing services, and expanding submarine cable projects.

Saudi Arabia and China will implement the terms of their partnership by exchanging information and expertise, activating visits between experts and specialists from both sides, and organizing conferences, seminars and working sessions.



Dell Raises Forecasts as Demand Surges for Nvidia Powered AI Servers 

The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)
The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)
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Dell Raises Forecasts as Demand Surges for Nvidia Powered AI Servers 

The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)
The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)

Dell Technologies raised its annual revenue and profit forecasts on Thursday, buoyed by demand for its AI-optimized servers that are powered by Nvidia's powerful chips, sending its shares up about 3% in extended trading.

Dell's infrastructure solutions group, which includes Nvidia-powered servers, surged 38% to a record revenue of $11.65 billion in the second quarter.

The company's servers are engineered to handle AI systems' intense computational demands, including training large language models.

"Enterprise remains a significant opportunity for us, as many are still in the early stages of AI adoption," Chief Operating Officer Jeff Clarke said in a post-earnings call.

Clarke said that Dell sees an emerging opportunity in "sovereign AI" by leveraging the company's strong relationships with governments globally.

Nvidia on Wednesday said nations building AI models in their own languages were turning to its chips, and that this would contribute about low double-digit billions to its revenue in the financial year ending in January 2025.

Nvidia CEO Jensen Huang called out the partnership with Dell earlier this year, saying they were helping businesses create their own "AI factories."

Dell's stock has risen 45% this year.

Dell said on Thursday it now expects annual revenue outlook to be between $95.5 billion and $98.5 billion, up from $93.5 billion and $97.5 billion previously. It also raised its annual adjusted profit per share forecast to $7.80, plus or minus 25 cents.

Demand for its AI-optimized servers rose about 23% sequentially to $3.2 billion in the second quarter. The backlog for these AI servers was $3.8 billion.

"Our pipeline has grown to several multiples of our backlog," Clarke said in a statement.

Revenue for the second quarter ended Aug. 2 rose about 9% to $25.03 billion, beating analysts' average estimate of $24.14 billion, according to LSEG data. It reported adjusted profit per share of $1.89 per share, compared with estimates of $1.71 per share.

While AI server demand soared, Dell's PC business struggled, losing market share to rivals. However, a strong refresh cycle for

AI PCs are expected next year after Microsoft ends support for Windows 10.

Revenue for the client solutions group - home to PCs - fell about 4% to $12.41 billion.

"Dell lost PC shipment shares in key markets in the second quarter. It is the top vendor in the US business market, but its competitors have shown growth and gained more shares than they did a year ago," said Mikako Kitagawa, director analyst at Gartner.

The company took a $328 million charge for workforce reductions in the second quarter.

Separately, Reuters exclusively reported earlier on Thursday that Dell is again exploring a possible sale of cybersecurity firm SecureWorks, following previous unsuccessful attempts to find a buyer.