Dell in talks for a $5 billion AI server deal for Elon Musk’s xAI
By MYBRANDBOOK
Dell Technologies is in advanced talks of securing a deal worth more than $5 billion to provide Elon Musk’s xAI with servers optimized for artificial intelligence work. The company will sell servers containing Nvidia Corp. GB200 semiconductors to Musk’s AI startup for delivery this year. Some details for the Dell and xAI partnership are being finalized and still may change.
AI servers have been seeing strong demand from enterprises, with Musk's companies, including Tesla and xAI, have emerged as major customers for such hardware.
In December, it was reported that xAI plans to expand its Memphis, Tennessee, supercomputer to house at least one million graphics processing units. That would represent a massive expansion for the supercomputer called Colossus, which currently has 100,000 GPUs to train xAI's chatbot called Grok.
As part of the expansion, Nvidia, which supplies the GPUs, and Dell and Super Micro, which have assembled the server racks for the computer, will establish operations in Memphis.
Last month, Bloomberg News reported that Hewlett Packard Enterprise had struck a deal worth more than $1 billion to provide Musk's social media platform X with servers optimized for AI work.
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