Photo by Steve Johnson on Unsplash

Dropbox Inc (Nasdaq: DBX) is in focus today after Nvidia Corp (Nasdaq: NVDA) said it had partnered with the file hosting service.

Dropbox customers to benefit from AI tools

On Friday, the California-based company said it had partnered with Nvidia to bring AI tools aimed at improving productivity to millions of its customers.

Dropbox will use the semiconductor behemoth’s artificial intelligence foundry to develop custom models for its products. According to Jensen Huang – the Chief Executive of Nvidia Corp:

Together, Nvidia and Dropbox will pave the way for millions of Dropbox customers to accelerate their work with customised generative AI applications.

The news arrives only days after Dropbox reported a strong third quarter but missed expectations for revenue guidance. Its shares are currently up more than 40% versus their year-to-date low.

Dropbox is committed to expanding in AI

Note that Dropbox Inc. is committed to tapping on artificial intelligence to drive future growth.

Earlier this year, it rolled out a beta version of an AI-enabled universal search tool named Dropbox Dash. The Nasdaq-listed firm, however, does not expect it to meaningfully boost revenue until late 2024.

Quickly find what you need with Dropbox Dash, AI-powered universal search that connects all your tools, content, and apps in a single search bar. Learn more about Dash in beta and join the waitlist: https://t.co/lWQpzmLo7x pic.twitter.com/DrZtpclfEz

— Dropbox (@Dropbox) June 21, 2023

As part of its AI push, Dropbox load off 16% of its staff or about 500 employees in April saying the company needs “a different mix of skill sets” for its next stage.

The San Francisco-headquartered firm now has well over 18 million paying users in total. Wall Street currently has a consensus “overweight” rating on Dropbox stock.

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