Dell Technologies is nearing a $5 billion deal to supply AI servers to Elon Musk’s XAI, highlighting the increasing demand for AI computing power. The servers will feature Nvidia’s Gbx 200 chips and are expected to support various AI initiatives, contributing to Dell’s goal of shipping $14 billion worth of AI servers by 2026.
Dell Technologies is reportedly finalizing a significant deal worth approximately $5 billion to supply AI servers to Elon Musk’s company, XAI. This information comes from a Bloomberg report and highlights the growing demand for AI computing power in the tech industry. The deal is expected to have a positive impact on Dell’s stock, which has already seen a notable increase.
The AI servers that Dell will provide are set to be equipped with Nvidia’s Gbx 200 chips, which are part of the Blackwell Architecture. These servers are scheduled for delivery within the year and are intended to support various AI initiatives, including the chatbot Grok. This partnership underscores the increasing reliance on advanced computing solutions to power AI technologies.
Dell’s commitment to the AI sector is further emphasized by its projection to ship $14 billion worth of AI servers by 2026. This ambitious target reflects the company’s strategic focus on capitalizing on the booming AI market and meeting the rising demand for high-performance computing resources.
In addition to the deal with XAI, Dell’s hardware will also enhance existing supercomputer projects in Memphis, which already utilize Dell servers. This relationship with other providers indicates Dell’s established presence in the AI infrastructure space and its ability to cater to diverse computing needs.
The news of the deal has positively influenced Dell’s stock performance, with shares rising over 5%. Other companies in the AI server market, such as HPE and Supermicro, have also experienced slight increases in their stock prices, indicating a broader market response to the growing interest in AI technologies and the infrastructure that supports them.