- Dell is close to ensuring a $ 5 billion AI server agreement with Elon Musk's XAI
- The servers, with GB200 NVIDIA chips, can admit the XAI supercomputer
- Analysts predict that Dell AI server revenues could reach $ 14 billion by 2026
Recently we reported that HPE had defeated Supermicro and Dell Technologies to win a $ 1 billion contract to supply optimized servers for the work of Elon Musk, potentially for Power Grok, the social network chatbot.
At the end of 2024, X announced that Grok-2 implemented all users for free, and losing Hpe would have been a great blow to Dell, which, together with Supermicro, tried to supply the team, but was finally failed.
However, if a new report of Bloomberg It is necessary, the iconic computer manufacturer could be about to win an even greater contract of one of the other Musk, XAI companies.
Memphis Bound?
The report says that Dell is close to finishing an agreement worth more than $ 5 billion to supply AI -centered servers equipped with GB200 NVIDIA chips. Some aspects are still being resolved, the sources familiar with the discussions told the news site, but if everything goes ahead, and surely, the servers will be delivered later in 2025.
Elon Musk said previously: “The table bets for being competitive in AI are at least several billion dollars per year at this time,” and is obviously paying to play.
It is not reported that the servers are not reported, but it is very likely that the majority, if not all, are for the XAI supercomputer project, known as “Coloso”, which is being built in Memphis using a mixture of Dell and Supermicro Servers According to all accounts, Dell has been very interested in supplying the rest of the servers to finish the job.
This agreement with XAI “will firmly establish the company as a leading server supplier of AI and increase sales, although the impact on profitability is less clear,” Bloomberg intelligence The analyst Woo Jin Ho scored.
“Analysts expect Dell to have sent more than $ 10 billion of AI servers in the fiscal year that ends last month and the project of that value will increase to $ 14 billion in the fiscal year that ends in January 2026” , Bloomberg Added, pointing out that Dell will inform his fiscal earnings of the fourth quarter on February 27.
