SMCI - Elon Musk reveals Dell and SMCI as xAI suppliers
2024-06-20 09:56:07 ET
Elon Musk just revealed Super Micro Computer Inc (NASDAQ: SMCI) and Dell Technologies Inc (NYSE: DELL) as providers of servers to xAI – his artificial intelligence startup committed to building a supercomputer.
Shares of both hardware firms are gaining on Thursday.
Musk named Dell and Supermicro on X.com
Elon Musk is committed to building “Dojo” – a $500 million supercomputer in Buffalo, NY. On X.com, the billionaire wrote this morning:
Dell is assembling half of the racks that are going into the supercomputer that xAI is building.
Supermicro, he added, is helping as well. The news arrives more than a month after SMCI reported revenue for its third quarter that missed Street estimates. The AI servers company still issued upbeat guidance for the future at the time.
Super Micro stock is currently down close to 20% versus its year-to-date high.
Dell CEO confirmed working with xAI
Elon Musk is also committed to building a “super dense, water-cooled supercomputer cluster” at his facility in Austin, Texas.
The technology is aimed at serving Tesla Inc in enabling computer vision and building large language models required for autonomous driving.
On Thursday, Michael Dell – the chief executive of Dell Technologies also confirmed on X.com that his company is working on a “Dell AI factory” in collaboration with Nvidia to power Grok – a gen AI chatbot developed by xAI.
In May, the multinational said its revenue topped Street estimates in the first financial quarter on the back of strength in its infrastructure solutions segment.
This is a developing story. Check back in a few minutes for more updates!
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