Dell and H2O.ai slash enterprise AI token costs

Dell Technologies and H2O.ai are partnering to address runaway token costs and data sovereignty concerns by shifting enterprises toward on-premises infrastructure and industry-specific vertical AI models. Dell has surpassed 5,000 AI factory deployments globally, with adoption led by financial services, healthcare and telecom sectors. H2O.ai reports moving nearly half of its high-volume customers onto Dell infrastructure using small language models, dramatically improving cost predictability. The strategy centers on distilling large models into smaller, deployable assets that run at the edge, where enterprise data is generated and decisions must be made locally.