Dell and Super Micro to Supply Server Racks for xAI, Elon Musk’s AI Startup

Dell Technologies and Super Micro Computer will provide server racks for the supercomputer being developed by artificial intelligence startup, xAI.

xAI

Elon Musk, the founder of xAI, announced this development on the social media platform X on Wednesday.

xAI is hiring. Those interested can apply at x.ai/careers.

Dell Technologies will be responsible for assembling half of the server racks for the supercomputer. xAI did not reveal further details.

Super Micro, based in San Francisco and renowned for its partnerships with chip firms like Nvidia and its advanced liquid-cooling technology, has confirmed its collaboration with xAI to Reuters.

Dell CEO Michael Dell commented on X, revealing that the company is constructing an “AI factory” in collaboration with Nvidia, which will support the next iteration of xAI’s chatbot, Grok. This aligns with Elon Musk’s earlier statements to investors about xAI’s plans to develop a supercomputer to enhance Grok.

The training of AI models, such as xAI’s Grok, necessitates a vast number of high-power chips, which are currently in limited supply.

Earlier this year, Elon Musk disclosed that training the Grok 2 model required approximately 20,000 Nvidia H100 graphic processing units (GPUs), and the Grok 3 model and subsequent versions would need up to 100,000 Nvidia H100 chips. Elon Musk aims to have this supercomputer operational by the fall of 2025.

xAI is positioned as a competitor to Microsoft-backed OpenAI and Alphabet’s Google. Elon Musk is also a co-founder of OpenAI.

In March, xAI announced its Series B VC funding round by raising $6 billion with participation from key investors including Valor Equity Partners, Vy Capital, Andreessen Horowitz, Sequoia Capital, Fidelity Management & Research Company, Prince Alwaleed Bin Talal and Kingdom Holding, amongst others.

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