Dell and Super Micro Computer to Supply Hardware for Elon Musk's AI Startup xAI in 2025 - Stock Prices Surge
Discover how Dell Technologies and Super Micro Computer are powering Elon Musk's AI venture xAI by providing critical hardware. Learn about the latest developments, partnerships with Nvidia, and the impact on stock prices in 2025.
Bill McColl brings over 25 years of expertise as a senior producer and writer across TV, radio, and digital platforms, leading teams in delivering groundbreaking news coverage.
Key Highlights
- Elon Musk reveals Dell Technologies and Super Micro Computer will supply hardware for his AI startup xAI.
- These companies are integral in assembling the supercomputer powering xAI’s innovations.
- Dell CEO Michael Dell confirms a collaboration with Nvidia to build a factory focused on supporting xAI's Grok chatbot.
Shares of Dell Technologies (DELL) and Super Micro Computer (SMCI) experienced significant gains in intraday trading on Thursday following Elon Musk’s announcement that these industry leaders are providing essential hardware for his artificial intelligence startup, xAI.
Musk shared on X that "Dell is assembling half of the racks for the supercomputer that xAI is building," highlighting Supermicro’s key role as well.
Earlier, Dell CEO Michael Dell posted on X about partnering with Nvidia (NVDA) to establish an AI-focused manufacturing facility dedicated to powering xAI’s Grok chatbot.
Musk's Grok AI: A Direct Challenge to ChatGPT
Launched in November 2023, Musk’s Grok chatbot aims to compete with OpenAI’s ChatGPT. Despite legal disputes earlier this year with OpenAI and CEO Sam Altman over the mission of artificial general intelligence, Musk has since withdrawn the lawsuit.
As of 11:38 a.m. ET Thursday, Dell shares climbed 2.4% to $152.69, Super Micro Computer surged 7.5% to $989.00, and Nvidia increased by 2.4% to $138.80. Nvidia recently surpassed Microsoft to become the world's most valuable company, marking a pivotal moment in AI industry valuations.
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