Dell to take charge of Elon Musk's xAI supercomputer project, contract to provide servers equipped with NVIDIA's GB200 for approximately 760 billion yen

xAI, the AI company owned by Elon Musk that developed 'Grok,' is reportedly planning to sign a deal with Dell to secure a large number of servers.

Dell Nears Deal With Musk's xAI for $5B in Servers With Nvidia Chips - Bloomberg

According to Bloomberg, Dell is preparing to win a contract worth more than $5 billion to provide xAI with servers optimized for its artificial intelligence operations.

Dell plans to sell servers equipped with NVIDIA's super chip 'GB200' and deliver them within 2025. According to Bloomberg, a source said, 'The final adjustments are being made and there is still a possibility of changes.'

NVIDIA announces GPU architecture 'Blackwell' and new GPU 'B200' to realize AI models with trillions of parameters - GIGAZINE

At the time of writing, the supercomputer project being built by xAI uses a mix of Dell and Supermicro servers. Dell will deploy tens of thousands of GPUs for the project in December 2024 and is scrambling to win the remaining share.

The supercomputer 'Colossus' deployed by xAI is equipped with 100,000 NVIDIA's high-performance AI processing chip 'H100', and when it started operation, Musk said, 'We will double the number of AI processing chips to 200,000 within a few months,' indicating his desire to expand the scale. In connection with this project, xAI announced in December 2024 that it was 'planning to expand its data center,' and further large-scale investments are expected to be made.

Elon Musk's AI company 'xAI' plans to expand data centers, number of high-performance chips to 1 million - GIGAZINE

Analysts predict that Dell will ship more than $10 billion worth of AI servers this fiscal year, with that figure jumping to $14 billion in the fiscal year ending January 2026. Dell is scheduled to report its fourth-quarter earnings on February 27, 2025, and Bloomberg points out that its AI server business will be a major focus for investors.

Bloomberg analyst Woo Jin Ho said of the xAI deal, 'While the impact on profitability is unclear, it will solidify Dell's position as a leading provider of AI servers, which should boost sales.'