Dell stocks pop on record of $5 billion do business in for AI servers for Elon Musk’s xAI

Dell stocks rose 4% on Friday following a record from Bloomberg that Elon Musk’s startup xAI used to be making ready an guarantee to shop for $5 billion in synthetic prudence servers from the {hardware} maker.

The apparatus containing Nvidia‘s GB200 graphics processing gadgets (GPUs) can be delivered this generation, in line with Bloomberg, which cited unnamed resources.

Many information middle equipment producers were optic expansion from promoting areas for coaching and working AI fashions. Dell said in November that it had $3.6 billion in quarterly AI server sequence call for. Dell’s general income for the original quarter totaled $24.37 billion, up 10% generation over generation.

In December, xAI announced a $6 billion investment spherical. CNBC reported that the Musk startup, which competes with OpenAI, used to be elevating the cash to buy GPUs. The Grok laborer from xAI is to be had for society to utility on X, which could also be owned through Musk.

Musk has been development out xAI’s facility in Memphis, Tennessee.

Dell and xAI representatives didn’t instantly reply to demands of remark.

Read the full Bloomberg report here.