Dell shares surged on February 14, 2025, following reports that Elon Musk’s startup xAI is nearing a $5 billion deal to purchase artificial intelligence servers from the company. The agreement, which is expected to include Nvidia’s GB200 graphics processing units, is set to deliver equipment within this year.
- Elon Musk attends Viva Technology conference.
- xAI plans to buy $5 billion servers.
- Dell shares rise on Musk's announcement.
- AI server demand boosts Dell's revenue.
- xAI raises $6 billion for GPU purchases.
- Grok assistant available on social network X.
Musk, the CEO of SpaceX and Tesla, has been actively involved in the AI sector, with xAI recently raising $6 billion in funding to enhance its capabilities.
The potential deal between Dell and xAI highlights the growing demand for AI infrastructure. Many manufacturers, including Dell, have reported increased orders for data center equipment designed for AI model training and operation. In November, Dell announced a $3.6 billion demand for AI servers, contributing to a total revenue of $24.37 billion for the quarter, marking a 10% year-over-year increase.
Elon Musk’s xAI has been making strides in the AI field, with a recent funding round of $6 billion aimed at acquiring GPUs. The Grok assistant, developed by xAI, is available for users on the social media platform X, which Musk owns. Last summer, Musk noted that Nvidia, X, and xAI played significant roles in establishing a data center equipped with GPUs in Memphis, Tennessee.
As the AI sector continues to expand, Dell’s partnership with xAI could further solidify its position in the market. The collaboration may also enhance xAI’s capabilities in developing advanced AI technologies. Dell has yet to respond to requests for comments regarding the deal.
The reported deal between Dell and xAI underscores the increasing investment in AI technology. As demand for AI infrastructure rises, partnerships like this could shape the future landscape of the tech industry.
