Musk Says Dell, Super Micro Computer Will Provide Hardware for His AI Startup – Investopedia

Key Takeaways

Shares of Dell Technologies (DELL) and Super Micro Computer (SMCI), also known as Supermicro, rose in intraday trading Thursday after Elon Musk announced that the two tech firms would be developing hardware for his xAI artificial intelligence (AI) startup.

Musk posted on X Wednesday that Dell is assembling half of the racks that are going into the supercomputer that xAI is building. He also mentioned Supermicros involvement.

Earlier Wednesday, Dell Chief Executive Officer (CEO) Michael Dell had posted on X that his company was creating an AI factory with Nvidia (NVDA) to power xAIs Grok chatbot.

Musk launched Grok in November as a challenge to OpenAIs chatbot, ChatGPT. He also sued the Microsoft-backed firm and CEO Sam Altman in March, claiming they violated OpenAIs founding mission "to ensure that artificial general intelligence benefits all of humanity," although he dropped the lawsuit last week.

As of 11:38 a.m. ET Thursday, shares of Dell were up 2.4% to $152.69, Super Micro Computer gained 7.5% to $989.00, and Nvidia rose 2.4% to $138.80 after the AI chipmaker Tuesday overtookMicrosoft (MSFT) to become the worlds most valuable company.

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Musk Says Dell, Super Micro Computer Will Provide Hardware for His AI Startup - Investopedia