Shares of Dell Technologies and Super Micro Computer surged on Thursday, June 20, after Elon Musk announced that the two companies would provide servers for his artificial intelligence startup xAI’s supercomputer project.
Musk revealed on Wednesday, June 19, in a post on his social media account X (formerly Twitter), that Dell is assembling half of the racks for the supercomputer, with Super Micro also contributing.
As a result, both companies saw their shares rise by over 5%, as per CNBC.
Musk plans to build a $500 million "Dojo" supercomputer in Buffalo, New York, and a "super dense, water-cooled supercomputer cluster" at the company's factory in Austin, Texas.
This technology aims to aid Tesla in developing computer vision and large language models for robots and autonomous vehicles.
Tesla CEO founded xAI last year to compete with Microsoft-backed OpenAI and Alphabet’s Google.
Meanwhile, Michael Dell, CEO of Dell, also announced that Dell is creating a "Dell AI factory" with Nvidia to support Musk's AI bot Grok.
