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 deliver servers equipped with Nvidia's GB200 semiconductors to xAI this year, Bloomberg News reported on February 15, 2025, citing sources.
Also Read: xAI Raises USD 6 Billion in Series C Funding
AI Chips to Power xAI’s Expansion
Some details are still being discussed and may change, the report added.
The deal aligns with xAI's expansion of its Memphis-based Colossus supercomputer, which aims to scale from 100,000 to over one million GPUs. Nvidia, Dell, and Super Micro are expected to establish operations in Memphis to support this growth.
Also Read: HPE Secures USD 1 Billion AI Server Deal with X: Report
Demand for AI Infrastructure
The surge in demand for AI infrastructure has driven major investments, with Hewlett Packard Enterprise recently securing a USD 1 billion deal to supply AI servers for Musk's social media platform, X. Dell and other AI hardware providers continue to benefit from this trend as companies race to build high-performance computing systems.
