Elon Musk's xAI build-up plan sparks gains by Dell and Super Micro
By Steve Gelsi
Tesla and SpaceX co-founder reveals role in xAI supercomputer for Dell and Super Micro after mentioning Nvidia chips
A confirmation from Elon Musk that he's using technology from Dell Technologies and Super Micro Computer in a supercomputer for his artificial intelligence company xAI sent shares of the two technology names higher on Thursday.
Dell Computer (DELL) "is assembling half of the racks that are going into the supercomputer that xAI is building," Musk said in a posting Wednesday on X, formerly known as Twitter.
He also said Super Micro Computer (SMCI) would be the second supplier for the xAI facility.
Dell stock rose by 2.5%. Super Micro Computer was up by 6.3% as the top gainer in the S&P 500 SPX.
Musk's update came in response to a posting by @DogeDesigner, who said Dell is building an AI factory for xAI.
The pace of updates on xAI from Musk appears to be increasing. He said earlier this month he planned to use Nvidia Corp. (NVDA) chips to train AI.
Musk said as many as 300,000 of Nvdia's new Blackwell chips may be necessary for the supercomputer project, which he said could be ready "in a few months."
-Steve Gelsi
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06-20-24 1010ET
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