Dell Technologies Nears $5 Billion AI Server Deal with Elon Musk's xAI
8 Sources
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Dell Technologies and xAI Set to Finalize $5 Billion Deal
This deal adds to yet another thread in hardware firms bonding with AI software firms. These enhancement models, such as xAI, require strong infrastructure to deliver the demand for faster, more intelligent models. It further strengthens the symbiotic relationship between Dell and Nvidia, along
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Dell Nears USD 5 Billion AI Server Deal with xAI: Report
Nvidia, Dell, and Super Micro are expected to set up operations in Memphis to support AI growth. Dell Technologies (Dell) is finalising a deal worth over USD 5 billion to supply Elon Musk's AI startup, xAI, with servers optimised for artificial intelligence (AI) workloads. Dell is expected to
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Report: Dell close to inking $5B+ AI server deal with xAI - SiliconANGLE
Dell Technologies Inc. could sell more than $5 billion worth of artificial intelligence servers to xAI Corp., Bloomberg reported today. The paper's sources said that discussions about the potential deal are in an advanced stage. However, they cautioned that the transaction terms could still
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Dell Nears $5 Billion AI Server Deal for Elon Musk's xAI
Dell Technologies Inc. is in advanced stages 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,
[5]
Dell Nears $5 Billion AI Server Deal for Elon Musk's xAI
(Bloomberg) -- Dell Technologies Inc. is in advanced stages 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
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Dell nears deal to sell $5 billion in AI servers to xAI, Bloomberg News reports
Feb 14 (Reuters) - Dell Technologies is nearing a deal worth more than $5 billion to provide Elon Musk's xAI with servers optimized for artificial intelligence work, Bloomberg News reported on Friday, citing people familiar with the matter. Shares of the server maker gained 4% after the
[7]
Dell shares pop on report of $5 billion deal for AI servers for Elon Musk's xAI
Dell shares jumped to a session high on Friday following a report saying Elon Musk's startup xAI was getting ready to agree to buy $5 billion in artificial intelligence servers from the hardware maker. The equipment would contain Nvidia's GB200 graphics processing units, according to Bloomberg,
[8]
Dell Stock Rises on Report of $5B AI Server Deal Talks With Elon Musk's xAI
Dell Technologies (DELL) shares rose Friday following a report the PC maker is nearing a $5 billion AI server deal with Elon Musk's xAI. The deal between Dell and Musk's AI startup is still being finalized, with xAI potentially poised to buy more than $5 billion of servers powered by Nvidia (NVDA)
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Dell Technologies is close to finalizing a deal worth over $5 billion to supply AI-optimized servers to xAI, Elon Musk's AI startup. The deal involves servers equipped with Nvidia's advanced GB200 semiconductors, set to bolster xAI's ambitious AI infrastructure expansion plans.
Dell and xAI's Landmark AI Server Deal
Dell Technologies is on the verge of securing a groundbreaking deal worth over $5 billion to supply AI-optimized servers to xAI, Elon Musk's artificial intelligence startup
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. This potential agreement marks a significant milestone in the rapidly evolving AI hardware landscape, highlighting the growing demand for high-performance computing infrastructure in the AI sector.Deal Specifics and Technology
The deal centers around Dell's provision of servers equipped with Nvidia's cutting-edge GB200 semiconductors to xAI
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. These servers are slated for delivery in 2025, although some details are still being finalized. The GB200 design is a powerhouse, featuring 36 Grace Blackwell Superchips, each combining one Grace CPU and two Blackwell B200 GPUs3
.xAI's Expansion Plans
This deal aligns with xAI's ambitious plans to expand its Memphis-based Colossus supercomputer. The company aims to scale from its current 100,000 GPUs to over one million
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. The Colossus supercomputer, which came online in September 2024 with 100,000 Nvidia GPUs, is crucial for xAI's development of the Grok series of large language models3
.Industry Impact and Market Trends
The potential Dell-xAI deal reflects a broader trend in the AI industry, where hardware firms are increasingly partnering with AI software companies
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. This symbiotic relationship is driven by the need for robust infrastructure to support increasingly complex AI models. The deal also strengthens the ties between Dell, Nvidia, and xAI in the AI ecosystem.Related Stories
Financial Implications
For Dell, this deal represents a significant boost to its AI server business. Analysts project that Dell's AI server sales could reach $14 billion in the 12 months through January 2026, marking a 40% year-over-year increase
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. The news of the potential deal has already impacted Dell's stock positively, with shares jumping up to 6% following the announcement.Future Outlook
The Dell-xAI deal, if finalized, could set a new benchmark in the AI hardware industry. It underscores the critical role of high-performance computing in advancing AI technologies and highlights the significant investments being made in AI infrastructure. As companies race to build more powerful AI systems, deals of this magnitude are likely to become more common, reshaping the landscape of AI development and deployment.
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