Musk AI supercomputer activated! DELL reportedly invests 5 billion Magnesium to compete with American Super Micro, snatching XAI orders

Elon Musk's AI company XAI is building a supercomputer in Memphis, USA. It is rumored that Dell Technologies is currently in the final stages of reaching a protocol agreement with xAI for a server supply of over $5 billion. This deal will enable Dell to provide AI-optimized servers with Nvidia GB200 chips, with delivery expected within 2024.

Dell seeks AI business opportunities, striving for the xAI Memphis supercomputing project

According to Bloomberg, the high-performance server market is experiencing explosive growth due to the surge in AI computing demand, with enterprises such as Dell, Super Micro, HPE, actively competing in the market. Tesla under Musk and XAI are among the main customers for this type of hardware.

And according to informed sources, Dell's cooperation with XAI is still in the final confirmation stage, and some details may be adjusted. However, this order will further solidify Dell's leadership position in the AI server market.

Dell's stock price soared on news, with AI server sales estimated to exceed 14 billion dollars

After the trading news came out, Dell's stock price rose by 6% to $116.88 on 2/15, but then fell back. Dell's stock price has fallen by 4.3% so far this year, and the market expects AI server business to become an important pillar of the company's future growth.

According to analysts' predictions, Dell's AI server sales may exceed $10 billion by the end of the fiscal year ending January 2024, and sales may increase to $14 billion by the end of the fiscal year ending January 2025. Dell is expected to announce its financial results on 2/27, at which time the AI server business will be the focus of investors' attention.

The Memphis supercomputer project is launched, and the Dell vs. US Supermicro battle is heating up.

Elon Musk's xAI is currently building an AI supercomputer in Memphis, using servers from Dell and Supermicro. Dell revealed last December that tens of thousands of GPUs have been deployed in the area, vowing to seize more than the average market share.

GPU is the core chip of AI computing, and Nvidia, the world's largest GPU manufacturer, uses the GB200 chip in this xAI, which is the latest AI server solution from Nvidia, meaning xAI will have more powerful computing capabilities.

XAI focuses on AI chatbot Grok, sharing resources with enterprises under Musk

The core product of XAI is the AI chatbot Grok, which is not only available to free users on Twitter, but also offers paid plans. It is widely believed that Musk's company has close collaboration in the field of AI, and resources such as manpower, technology, and even computing power may be shared among different enterprises.

With the intensifying competition in the AI market, whether Dell can successfully secure this $5 billion deal with XAI will be a key factor in the future AI server market.

(Musk XAI team launches Grok 3: benchmark testing surpasses competitors, visual thinking, understands creating new games)

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