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“Dell shares get a boost on reports of $5 billion deal to sell servers to Musk’s xAI”‼️‼️‼️

Dell is reportedly close to sealing a massive $5 billion deal to supply AI-optimized servers, powered by Nvidia semiconductors, to Elon Musk's xAI. This development sent Dell's shares soaring over 3% intraday. The company has been aggressively expanding its AI server business, with impressive numbers to show for it. In its November earnings report, Dell announced that it had shipped $2.9 billion worth of AI servers, with a staggering order backlog of $4.5 billion. Its servers and networking revenue skyrocketed 58% to $7.4 billion in the same quarter. Analysts predict that Dell will ship a whopping $14 billion worth of AI servers in the current fiscal year. This deal, if finalized, would be a significant milestone in Dell's AI journey. Interestingly, xAI recently launched a free app for its flagship chatbot, Grok, last month ¹.

Dell Technologies is nearing a massive deal worth over $5 billion to provide Elon Musk's xAI with servers optimized for artificial intelligence work. These servers will contain Nvidia's GB200 semiconductors and are slated for delivery this year ¹ ² ³.

This deal would be a significant win for Dell, which has been expanding its AI server business. In fact, Dell's servers and networking revenue rose 58% to $7.4 billion in the last quarter, with the company shipping $2.9 billion worth of AI servers and having an order backlog of $4.5 billion ¹.

XAi, Musk's AI startup, is developing a supercomputer project in Memphis, Tennessee, which will house at least one million graphics processing units (GPUs). This expansion will establish Nvidia, Dell, and Super Micro operations in Memphis.

The demand for AI-optimized servers is booming, driven by enterprises seeking hardware capable of powering complex applications. Musk's companies, including Tesla and xAI, are major customers for such hardware ¹