Round Rock-based Dell reportedly close to $5 billion deal with Elon Musk's AI startup xAI
Round Rock-based Dell Technologies is reportedly nearing a $5 billion deal to provide Elon Musk's artificial intelligence company with servers optimized for artificial intelligence work.
According to Bloomberg, the company will sell servers containing Nvidia Corp. semiconductors to xAI, Elon Musk's AI startup, with delivery set for later this year. xAI's Grok assistant is already available on Musk's social media platform X, formerly known as Twitter.
Dell's shares jumped as much as 6% on Friday following the news.
More: Dell Technologies ending remote, hybrid work; employees return to office five days a week
Musk is building xAI's facilities in Memphis, Tennessee, although most of his businesses are located or moving their headquarters to Texas. Tesla, The Boring Company, SpaceX, and X all have facilities in Central Texas.
Dell's fourth-quarter earnings call is scheduled for later this month and AI server business is expected to be a major focus for investors. Some analysts expect Dell to have shipped more than $10 billion of AI servers in the fiscal year that ended last month.
This article originally appeared on Austin American-Statesman: Dell shares surge 6% on news of $5 billion AI server deal with xAI
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