XAI is targeting a colossal agreement with Dell: $ 5 billion for servers boosted by NVIDIA AIA

The agreement would exceed $ 5 billion and concern the implementation of IA servers equipped with NVIDIA GB200 chips. Previously, HPE won a billion dollars contract to provide optimized servers for AI to X, another Elon Musk company. Dell Technologies and Supermicro had also participated in the call for tenders, without success. This new agreement with XAI could therefore compensate for the disappointment of Dell Technologies.

XAI and Dell is preparing a major partnership for AI

According to sources close to the file, the delivery of the servers is scheduled for the second half of 2025. They will be intended for the project of supermarket “Colossus” From Xai, currently under construction in Memphis. The calculation center already uses a mixture of Dell Technologies and Supermicro servers. Dell Technologies would have expressed its interest to provide the rest of the necessary equipment to finalize the project.

Previously, Elon Musk said that “The minimum conditions to be competitive in AI now amount to several billion dollars per year”hence these massive investments. According to Woo Jin Ho, analyst at Bloomberg Intelligence, this contract with XAI “would firmly establish Dell as a leading supplier in the IA servers and stimulates its sales, although the impact on its profitability is less obvious”.

Bloomberg add that “Analysts believe that Dell will have delivered more than $ 10 billion in IA servers during the fiscal year which ended last month, and provide that this value will increase to $ 14 billion for the financial year ending in January 2026 “. Dell Technologies must present its financial results, on February 27, 2025, of the fourth quarter.