Dell, Super Micro Shares Jump on Reports of ‘AI Factory’ for Elon Musk’s xAI

Dell Technologies Inc. shares rose on Thursday after Chief Executive Officer Michael Dell said the company is building a “Dell AI factory” for Elon Musk’s startup xAI alongside Nvidia Corp.

“We’re building a Dell AI factory with Nvidia to power Grok for xAI,” Michael Dell wrote in an X post on Wednesday.

Musk responded to comments about the post, saying that Super Micro Computer Inc. would also be providing servers. Super Micro’s X account replied to Musk with a celebration emoji and a link to its website.

XAI will use Dell’s XE 9680 servers in the factory, a Dell spokesperson said in an email. “Our size, scale and breadth of solutions position us well for large-scale projects like these,” the company said in a statement, adding that the size of its so-called graphics processing clusters allows it to train AI models faster.

A representative for Super Micro didn’t immediately respond to requests for comment and additional details.

We’re building a Dell AI factory with @nvidia to power @grok for @xai @elonmusk

— Michael Dell (@MichaelDell) June 19, 2024