$5B Deal in the Works: Dell to Equip Musk’s xAI with Cutting-Edge AI Servers

According to Bloomberg News, Dell Technologies is close to sealing a $5 billion deal to sell AI-optimized servers to Elon Musk's xAI. The servers will be powered by Nvidia's powerful GB200 semiconductors and are expected to be delivered this year. Following the announcement, Dell's shares increased by 4%, demonstrating investor confidence in the company's growing AI infrastructure business.

AI servers are in high demand as businesses look for superior technology to power complicated AI applications. Musk's ventures, like xAI and Tesla, are important drivers of this demand. In December, the Greater Memphis Chamber announced xAI's ambitions to expand its Memphis supercomputer, Colossus, to accommodate more than one million GPUs, up from 100,000 now. This huge growth will benefit xAI's Grok chatbot and other AI-powered endeavors.

To support this expansion, Nvidia, Dell, and Super Micro will open offices in Memphis, bolstering the AI ecosystem. Furthermore, Bloomberg reported last month that Hewlett Packard Enterprise had signed a $1 billion contract to supply AI servers for Musk's social networking platform X.

While the specifics of Dell's arrangement are still being worked out, this collaboration demonstrates the rapid growth of AI infrastructure and Musk's dedication to pushing AI technology.

Information referenced in this article is from The Hindu