Dell Technologies is on the verge of finalizing a monumental deal exceeding $5 billion to supply AI-optimized servers to Elon Musk’s artificial intelligence venture, xAI. This agreement involves the provision of servers equipped with Nvidia’s GB200 semiconductors, slated for delivery within this year. The collaboration signifies a substantial expansion of xAI’s computational capabilities, particularly for its Memphis-based supercomputer, Colossus. Plans are underway to scale Colossus to accommodate over one million GPUs, a significant leap from its current 100,000 units. This development underscores the escalating demand for advanced hardware to support complex AI applications. Notably, Musk’s enterprises, including Tesla and xAI, have emerged as prominent consumers in this sector. In a related move, Hewlett Packard Enterprise recently secured a $1 billion contract to furnish AI-optimized servers for Musk’s social media platform, X. These strategic partnerships highlight the intensifying competition among technology giants to deliver cutting-edge infrastructure for AI advancements.