Dell Technologies Inc (NYSE:DELL), in partnership with NVIDIA Corp (NASDAQ:NVDA), is building an AI factory to power xAI's supercomputer, confirmed by Elon Musk and Michael Dell. The factory will support Grok, xAI's generative AI chatbot, designed to rival OpenAI's ChatGPT.
What Happened: Musk, Tesla Inc (NASDAQ:TSLA) CEO and xAI founder, confirmed on X that "Dell is assembling half of the racks that are going into the supercomputer that xAI is building," in response to DogeDesigner's update on Dell's involvement.
To be precise, Dell is assembling half of the racks that are going into the supercomputer that xAI is building
— Elon Musk (@elonmusk) June 19, 2024
Dell, Chairman and CEO of Dell Technologies, also announced on X, "We're building a Dell AI factory with Nvidia to power Grok for xAI."
We're building a Dell AI factory with @nvidia to power @grok for @xai @elonmusk pic.twitter.com/2aTYLtCBup
— Michael Dell (@MichaelDell) June 19, 2024
Grok, xAI's generative AI chatbot, was developed to rival OpenAI's ChatGPT. Grok, based on a large language model, can process various types of visual information, including documents, diagrams, charts, screenshots, and photographs, along with its text capabilities.
Why It Matters: The partnership between Dell Technologies and Nvidia is seen as a pivotal move in the AI industry. In May, Nvidia CEO Jensen Huang emphasized the importance of this collaboration in expanding the reach of AI technology.
Huang stated that the partnership with Dell will enable a broader range of customers to establish their own "AI factories." He added, "It's not about just delivering a box — it's about delivering an entire infrastructure. It's an infrastructure that's insanely complicated."
Additionally, Jensen Huang recently surpassed Michael Dell in wealth as Nvidia's market value soared past Apple and Microsoft, making it the world's most valuable company. Huang's net worth surged to $106.1 billion, fueled by the rising demand for Nvidia chips in AI applications.
Moreover, Dell Technologies has established itself as a leader in bringing AI to the enterprise. Following its first-quarter earnings report, Dell announced a 6% year-over-year revenue increase to $22.24 billion, with the Infrastructure Solutions Group's revenue rising by 22% year-over-year.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote