Dell Technologies Inc. (DELL) is making a $120 million bet on better AI data management. The tech giant agreed Wednesday to acquire Dataloop AI, an Israeli startup that helps companies wrangle the messy, unstructured data needed to train artificial intelligence models.
It's an all-cash deal, and it signals Dell's determination to become a one-stop shop for enterprise AI infrastructure. If you're building AI systems at scale, you need serious data operations before you even think about model training. That's where Dataloop comes in.
What Dataloop Actually Does
Founded in 2017, Dataloop built a platform that tackles one of AI's least glamorous but most essential problems: organizing chaos. The startup's technology manages, labels, and processes unstructured data, transforming it into the clean, organized datasets that large-scale AI models require to function properly.
Think of it as the behind-the-scenes infrastructure that makes AI training actually possible. Complex data workflows become streamlined. Random information becomes structured fuel for machine learning.
By the end of last year, Dataloop was working with clients spanning multiple industries. Its customer roster includes Vimeo, Rentokil, UVeye, Taranis, Pixellot, Syngenta, Brunswick, and several major global automakers. The company employs over 80 people.
For Dell, absorbing Dataloop's capabilities means enhancing its AI toolset while strengthening the data management layer that enterprise AI initiatives depend on. It's infrastructure for infrastructure, essentially.
Dell's AI-Fueled Growth Trajectory
The acquisition comes as Dell rides a wave of AI-driven demand. Last month, the company issued guidance projecting fourth-quarter revenue between $31 billion and $32 billion, surpassing analyst expectations. Its EPS forecast of $3.50 also beat market expectations of $3.23.
Dell increased its full-year revenue guidance to between $111.2 billion and $112.2 billion, up substantially from its prior range of $105 billion to $109 billion. The company also raised its full-year adjusted EPS guidance from $9.55 per share to $9.92 per share, compared to analyst estimates of $9.55 per share.
What's Driving the Numbers
In November, Dell reported third-quarter earnings that beat expectations and raised its full-year forecast. The driver? Surging demand for AI servers and improved profitability in its infrastructure division.
Goldman Sachs thinks this momentum has legs. The investment bank expects Dell's AI-driven growth to extend through 2026, supported by ongoing traditional server refresh cycles and an expanding mix of Dell-IP storage offerings. All of which should contribute to sustained margin expansion.
DELL Price Action: Dell Technologies shares traded up 0.70% at $128.78 during premarket trading on Thursday.