HPE Secures USD 1 Billion AI Server Deal with X: Report

Hewlett Packard Enterprise (HPE) has signed a deal exceeding USD 1 billion to provide artificial intelligence (AI)-optimised servers to Elon Musk’s social media platform, X, Bloomberg News reported on Friday, citing sources familiar with the matter. The agreement, finalised late last year, comes amid surging demand for hardware capable of supporting advanced AI applications.

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Also Read: xAI Raises USD 6 Billion in Series C Funding

Competitors Also Bid for the Contract

HPE competitors Dell Technologies and Super Micro Computer had also bid to sell the equipment, the report said. Musk’s companies, including X, Tesla, and xAI, are driving demand for high-performance computing infrastructure to power AI advancements.

AI Servers in High Demand

According to the report, AI servers have been seeing strong demand from enterprises looking for hardware capable of powering artificial intelligence applications. Following the news, HPE shares rose 1 percent in afternoon trading.

Also Read: Dutch Government Secures Nvidia Deal for AI Facility: Report

Dutch Government Teams Up with Nvidia

In another such development, the Dutch government reportedly reached a deal with Nvidia last week to supply hardware and technological expertise for a potential AI supercomputer facility.