HPE Wins $1-Billion AI Server Deal For Elon Musk’s X

Hewlett Packard Enterprise Co. (HPE) has secured a deal worth more than $1 billion to supply Elon Musk’s X social network with servers optimized for artificial intelligence (AI) workloads, Bloomberg News reported.

Demand for high-performance computing to support AI workloads has surged, benefiting server manufacturers like HPE. I Photo: SNA Displays

The agreement was finalized late last year, according to anonymous sources familiar with the matter. Competitors Dell Technologies Inc. and Super Micro Computer Inc. had also submitted bids for the project.

Demand for high-performance computing to support AI workloads has surged, benefiting server manufacturers like HPE.

Musk’s companies, including Tesla Inc. and xAI, have become significant customers for this hardware.

A supercomputer project under development by xAI in Memphis utilizes a combination of Dell and Super Micro servers. Musk's firms are known to share employees, technology, and computational resources. xAI’s flagship product, a chatbot called Grok, is primarily accessible to paying users of X, formerly known as Twitter.

Shares of HPE rose as much as 4.3% during the day before closing slightly higher at $22.08 in New York. In contrast, Dell's stock fell 3.8% to $114.77, while Super Micro's shares remained largely unchanged at $32.60.