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Dell shares jumped to a session high on Friday following a report saying Elon Musk’s startup xAI was getting ready to agree to buy $5 billion in artificial intelligence servers from the hardware maker.
The equipment would contain Nvidia‘s GB200 graphics processing units, according to Bloomberg, which cited unnamed sources.
Many data center gear manufacturers have been seeing growth from selling boxes for training and running AI models. Dell said in November that it had $3.6 billion in quarterly AI server order demand. Dell’s total revenue for the quarter ended Nov. 1 totaled $24.37 billion, up 10% year over year.
In December xAI announced a $6 billion funding round. CNBC reported that the Musk startup was raising the money to purchase GPUs. The Grok assistant from xAI is available for people to use on the Musk-owned social network X.
Read the full Bloomberg report here.
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