Musk Says Dell, Super Micro Computer Will Provide Hardware for His AI Startup
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Key Takeaways
Elon Musk announced that Dell Technologies and Super Micro Computer will be providing hardware for his artificial intelligence (AI) project.
Musk said the two companies would be involved in assembling the supercomputer that his startup, xAI, is building.
Dell CEO Michael Dell also noted that Dell was working with Nvidia to create a factory to power xAI’s chatbot, Grok.
Shares of Dell Technologies (
DELL
) and Super Micro Computer (
SMCI
), also known as Supermicro, rose in intraday trading Thursday after
Elon Musk
announced that the two tech firms would be developing hardware for his xAI
artificial intelligence (AI
) startup.
Musk posted on X Wednesday that “
Dell
is assembling half of the racks that are going into the supercomputer that xAI is building.”
He also mentioned Supermicro’s involvement.
Earlier Wednesday, Dell
Chief Executive Officer (CEO
) Michael Dell had posted on X that his company was creating an AI factory with Nvidia (
NVDA
) to power xAI’s Grok
chatbot
.
Musk Launched Grok in Challenge to ChatGPT
Musk launched Grok in November as a challenge to OpenAI’s chatbot, ChatGPT.
He also
sued
the Microsoft-backed firm and CEO Sam Altman in March, claiming they violated OpenAI’s founding mission “to ensure that artificial general intelligence benefits all of humanity,” although he dropped the lawsuit last week.
As of 11:38 a.m. ET Thursday, shares of Dell were up 2.4% to $152.69, Super Micro Computer gained 7.5% to $989.00, and Nvidia rose 2.4% to $138.80 after the AI chipmaker Tuesday overtook Microsoft (
MSFT
) to become the
world’s most valuable company
.
