Dell “AI Factory” to Power Musk’s xAI With Nvidia Chips
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Dell “AI Factory” to Power Musk’s xAI With Nvidia Chips

Dell announced today that its AI Factory platform will use Nvidia GPUs to power Elon Musk's xAI startup.
Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

Dell Technologies (NYSE: DELL) announced today that its recently unveiled AI Factory platform will utilize Nvidia’s (NASDAQ: NVDA) high-performance GPUs to power xAI, the artificial intelligence startup founded by Elon Musk. The move comes as Dell seeks to accelerate the adoption of AI in the enterprise by simplifying the deployment process and making it more accessible to businesses of all sizes.

Dell’s AI Factory, first introduced last month, is a comprehensive offering designed to help organizations harness the power of AI at scale. By leveraging Nvidia’s cutting-edge chips, the platform will enable xAI to train and run its advanced AI models, including Grok, across traditional infrastructure and accelerated computing environments.

xAI and the AI Revolution

Founded in March 2023, xAI has quickly established itself as a major player in the AI industry. The San Francisco Bay Area-based company, which has a stated mission of “understanding the true nature of the universe,” has developed a range of AI models and tools, such as Grok and PromptIDE.

Despite having only around 50 employees as of 2024, xAI has raised significant funding, reportedly raising up to $6 billion in recent Series B funding to support its ambitious plans, including constructing the world’s largest supercomputer in Memphis.

The partnership between Dell and xAI, facilitated by the AI Factory platform and Nvidia’s GPUs, is expected to play a significant role in xAI’s growth and the broader adoption of AI in the enterprise.

The AI Factory provides an intelligent bundling of software and services, enabling organizations to customize and accelerate the development of in-house chatbots, digital assistants, and other AI-powered applications across various use cases, from content creation and language search to code generation and beyond.

Dell and Nvidia Stock Brief

As of the close of trading on June 18, 2024, Nvidia’s stock price stood at $135.58, up 3.51% on the day and an impressive 173% year-to-date.

The company’s market capitalization now sits at $3.34 trillion, reflecting the growing demand for its AI-focused chips. Similarly, Dell’s stock price rose 5.01% to $149.15, with its market cap reaching $105.8 billion, as investors recognized the potential of its AI Factory offering.

By combining cutting-edge hardware, software, and services, these collaborations have the potential to accelerate the adoption of AI across industries, transforming the way businesses operate and driving unprecedented levels of innovation.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.