Dell announces development of new AI factory with Nvidia GPUs

Michael Dell, CEO and chairman of Dell Technologies, stated on X that the Dell AI Factory is currently being developed by the company.

The AI model developed by Elon Musk's company, xAI, will be powered by NVIDIA GPUs in this new project. Elon Musk has heavily invested in computing resources for artificial intelligence.

Musk also said that Super Micro Computer Inc. would also be providing servers. 

A Dell representative stated in an email that XAI will deploy Dell's XE 9680 servers at the factory. The company stated that its size, scale and range of solutions make it well-suited for projects on a large scale. It also mentioned that its graphics processing clusters enable faster training of AI models.

Both Dell and Super Micro are expanding their server capabilities in order to attract businesses who are developing and using artificial intelligence programs, which demand higher data processing power.

Super Micro made an announcement earlier this week about its intention to establish three additional locations in Silicon Valley to enhance the development of AI.

After this announcement, the shares of Dell technologies rose about 3% in the premarketing trading session on Thursday. Similarly, Super Micro's shares also increased by 3% after closing previously at $920.01.