Dell is in advanced negotiation stages to ensure an agreement of more than $ 5 billion to provide the ELON MUSK XAI servers optimized for artificial intelligence work.
The company will sell NVIDIA GB200 semiconductors for Musk AI startup, scheduled for delivery this year, according to people familiar with the subject who asked not to be identified due to the private nature of the work. Some details are being finalized and may still change, some of these people added.
The demand for computing to perform AI workloads led to a boom to high -power manufacturers such as Dell, Super Micro Compter and Hewlett Packard. Musk companies, including Tesla and Xai automaker, emerged as large hardware customers.
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Dell and Nvidia refused to comment. Xai did not respond to a request for comment.
Dell shares rose up to 6%, reaching $ 116.88 on Friday, with the news, before reducing some gains. The shares had fallen 4.3% this year until the closing of Thursday.
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A supercomputer project being built by XAI in Memphis used a combination of Dell and Super Micro servers. In December, Dell said it had implemented tens of thousands of graphic processing units (GPUS) there and was working to gain a “unfair part” of the remaining construction. GPUs are the main chips to feed AI work loads, and Nvidia is the main manufacturer of these processing units.
Analysts expect Dell to have sent more than $ 10 billion on AI servers in the fiscal year that ended last month and project that this amount will increase to $ 14 billion in the fiscal year that ends in January 2026. Dell is scheduled To publicize the results of the fourth tax quarter on February 27, with the AI server business being an important focus for investors.
The agreement with Xai would “firmly establish the company as one of the main AI server suppliers and would increase sales, although the impact on profitability is less clear,” wrote Woo Jin Ho, analyst at Bloomberg Intelligence.
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The main product of AI XAI startup, a chatbot called Grok, has been available mainly to X -pay users, the social network previously known as Twitter. The companies Musk runs are known for sharing employees, technology and computational power.
© 2025 Bloomberg L.P.
