The AI device arms race is unlike any you’ve seen before. Here’s why

As AI-powered devices increase their popularity amongst global organizations, partnerships have become the currency of innovation. Gone are the days when device manufacturers, silicon developers, and software vendors operated in silos, delivering fragmented solutions.

According to Adam Reiser, SHI’s Sr. Director of End User Compute, the landscape is changing, and collaboration is no longer optional – it’s the secret behind the next wave of technological breakthroughs.

With our deep network of 17,000 active customers and longstanding relationships with leading industry players, SHI is positioned not just as a participant but as a key orchestrator in this new paradigm. How far can these partnerships go, and is there a point where collaboration becomes competition?

Collaboration is the new competitive edge

Reiser highlights the dynamic shift in the industry’s approach to partnerships. “We’re seeing the biggest change in the last 12 to 18 months,” he says, emphasizing how device manufacturers like Dell Technologies and HP, silicon giants such as Intel, AMD, and Qualcomm, and independent software vendors (ISVs) are collaborating more closely than ever before.

This isn’t just lip service. Reiser points to a fundamental change in the focus of these collaborations: a pivot from backend functionality (such as security and device management) to end-user productivity. These partnerships are no longer just about ensuring devices are manageable – they’re about making them indispensable to the user experience.

With this new era of collaboration in mind, we’re fostering environments where these partnerships can thrive. Through initiatives like our Next-Gen Device Labs, we’re enabling companies to test, integrate, and innovate in controlled settings, creating what Reiser calls “killer functionalities” that are poised to redefine what AI-powered devices can achieve.

Adam Reiser explains what he calls IT’s new wild west: AI-powered devices and the way OEMs are shifting the paradigm with unprecedented industry collaboration.

The stakes are too high for companies not to work together

In this new ecosystem, the stakes are astronomically high. Device manufacturers like HP and Dell, which have traditionally been walled off from ISVs, are now leaning into these relationships to survive and thrive. AI devices represent a massive market opportunity, and success hinges on seamlessly integrating hardware and software.

“These new collaborations are about productivity features and functionalities,” Reiser explains. This means more than just building reliable machines; it’s about enabling generative AI applications that enhance everything from spreadsheet analysis to creative workflows.

At the heart of this transformation are silicon manufacturers like Qualcomm and NVIDIA, whose chips power the AI accelerators within these devices. Qualcomm, for instance, has made significant strides in integrating high-performance neural processing units (NPUs) into its ARM processors. But hardware is only half the equation. Without software vendors stepping up to leverage these capabilities, the technology remains underutilized.

From collaboration to competition?

While the industry is moving toward stronger alliances, it raises an uncomfortable question: At what point does collaboration turn into competition?

Silicon manufacturers, for example, are expanding their reach into software and services. Consider NVIDIA’s CUDA® platform and AI libraries. CUDA is a parallel computing platform and programming model developed by NVIDIA to accelerate applications with the power of graphical processing units (GPUs). This is just one example of a chipmaker stepping beyond hardware to offer vertically integrated solutions. Similarly, ISVs are becoming more hardware-aware, developing applications that run optimally on specific chipsets.

Reiser acknowledges this tension indirectly when discussing startups entering the space. He notes companies like Iternal – an AI-first software vendor – are working to create cross-platform solutions that threaten to disrupt incumbents. These agile players, unburdened by legacy constraints, are leveraging their partnerships with SHI and other integrators to level the playing field.

For SHI, our role is to navigate these dynamics while remaining a trusted advisor. By staying focused on solving customer problems rather than pushing specific platforms, we’re uniquely equipped to mediate between competing interests.

What this means for the future of AI devices

When we orchestrate vendor partnerships, it’s not just about creating better products; it’s about creating ecosystems. The success of an AI device is no longer measured by the capabilities of the device alone, but by the seamless integration of hardware, software, and services.

Meanwhile, Reiser states that, while the industry has seen incremental advances, a definitive use case that justifies the hype around AI devices has yet to emerge. In Reiser’s view, AI devices simply lack the “killer app” users are looking for.

This makes the collaborative efforts between SHI’s partners even more critical. Whether it’s through generative AI tools, advanced security features, or device telemetry systems, these alliances are racing to identify and build that transformative value proposition.

A provocative take: Will collaboration kill differentiation?

While the benefits of collaboration are evident, one must wonder whether this level of integration will erode differentiation in the long term. If Dell Technologies, HP, and Lenovo all rely on similar partnerships with the same silicon providers and ISVs, how will they distinguish themselves in the market?

SHI’s role as a mediator could be the answer. By offering lab-based environments where companies can experiment with unique integrations, SHI ensures the collaborative model doesn’t come at the cost of innovation.

Still, as the lines between partners and competitors blur, the industry may be heading toward a new kind of arms race – one in which differentiation hinges not on standalone products, but on how seamlessly those products work within the broader ecosystem.

To leverage our Next-Gen Device Lab for yourself or learn more about the latest advancements in AI devices, contact our experts today.

With a proud 20+ year history at SHI, Adam Reiser is the Director of our End User Compute practice. His team includes pre-sales support and partnerships for all business units and top EUC partners worldwide.