Hewlett Packard Enterprise Co. won a deal worth more than $1 billion to provide servers optimized for artificial intelligence, to social media platform X, owned by Elon Musk.
The relevant information was published in the media with reference to insiders who are aware of the specified deal. The agreement between the companies was reached at the end of last year. This was reported by informants of journalists. Insiders used the right of anonymity because, as they noted, the deal is private.
The media also published information according to which Dell Technologies Inc. and Super Micro Computer Inc. bid to sell the equipment.
HPE did not respond to a media request for comment on the deal.
It’s worth noting that against the background of the so-called artificial intelligence boom, consumer demand for computing equipment to run AI workloads has increased significantly. Within the framework of the relevant trend, products from manufacturers of powerful servers, such as HPE, have become more popular. Elon Musk’s companies, including, in addition to X, Tesla Inc., and xAI, have become major customers of the mentioned products.
A supercomputer project being built by xAI in Memphis has used a mix of Dell and Super Micro servers. Companies that Elon Musk runs are known to share employees, technology, and computing power. To provide X social network
Against the background of the news about the deal, the value of HPE shares showed an increase of 4.3% at trading in New York. It is worth noting that then this indicator decreased. Dell securities fell by 3.8%. The value of Super Micro shares did not show significant changes.
As we have reported earlier, HP to Get $50 Million for Semiconductor Tech Project.
