Elon Musk throws "Heavenly Wealth" to Dell and Super Micro Computer (SMCI): xAI supercomputing system built by them

According to the VESYNC APP, the high-performance AI server leader Dell Technologies (DELL.US) and Super Micro Computer (SMCI.US) saw a significant rise in their stock prices in pre-market trading on the US stock market, with Super Micro Computer's stock price surging over 5% at one point. Earlier, there were reports that xAI, a new force in the generative AI field founded and led by Tesla CEO Musk, will collaborate with Dell and Super Micro Computer to build an "artificial intelligence supercomputing system."

Michael Dell, CEO of Dell Technologies, commented on the above news, stating that the company, together with NVIDIA (NVDA.US), will establish a "Dell artificial intelligence computing power factory" for xAI founded by Musk. Subsequently, Dell Technologies' stock price rose in pre-market trading. "We are working with the AI chip leader NVIDIA to build the Dell artificial intelligence factory to power xAI's Grok large model," Michael Dell replied in a post on Wednesday.

Musk, who is known for his active presence on social media platform X (formerly known as Twitter) and is also a private owner of X, immediately responded to the comments on the post, emphasizing that another high-performance AI server leader, Super Micro Computer, will also provide AI servers. Super Micro Computer's official X account quickly responded to Musk with a celebratory emoji and a website link.

Official representatives from Dell and Super Micro Computer did not immediately respond to requests for comments and further details on the collaboration.

In July 2023, Musk founded the AI startup xAI, aiming to launch a ChatGPT AI chatbot that can rival the popular one from OpenAI. The core researchers of xAI come from top AI companies such as Google and OpenAI.

Musk has been one of the earliest supporters of AI technology. Before OpenAI launched ChatGPT at the end of 2022, he had once supported OpenAI. Musk was one of the earliest founders and contributors to OpenAI, but in 2018, he chose to leave the OpenAI board due to disagreements with the executives.

In November last year, Musk's startup xAI introduced Grok, which is considered one of the strongest competitors to ChatGPT, and in May this year, it received a venture capital investment of up to $6 billion, valuing this AI startup, founded just a year ago, at $24 billion Dell's stock price rose more than 3% in pre-market trading on Thursday. The stock closed at $149.15 on Tuesday, up 5%, hitting new highs multiple times this year with a staggering 96% increase. Super Micro Computer closed at $920.01 on Tuesday, with pre-market gains exceeding 5%. It was included in the S&P 500 index this year, with a remarkable 220% increase, far surpassing Nvidia's 170% increase.

AI Craze Sweeps the Globe, Dell and Super Micro Computer Deeply Tied to Nvidia Stand Out as Big Winners

Dell and Super Micro Computer have been increasing production capacity to manufacture servers equipped with Nvidia's H100 and the latest versions H200/GB200 AI servers, aiming to win larger businesses from companies building and using artificial intelligence applications. Many generative AI applications like ChatGPT and Sora's video models require immense data processing power and expanding computational resources.

Dell and Super Micro Computer's major clients include developers of ChatGPT and Sora like OpenAI, as well as numerous AI startups in the field, including xAI founded by Musk, and cloud service giants like Oracle and Amazon AWS. Due to their long-standing close partnerships with Nvidia, these two companies deeply tied to Nvidia often secure larger shipments of Nvidia AI GPUs due to their strong supply chains and long-term collaborations with Nvidia.

Through years of close collaboration with Nvidia, Dell and Super Micro Computer utilize the latest Nvidia GPUs and integrate a full suite of CUDA acceleration tools to provide essential technology for global enterprises deploying AI technology—GPU acceleration for AI training/inference workloads. Their deep partnerships with Nvidia ensure top priority for optimal hardware and software integration and performance optimization.

Earlier this week, Super Micro Computer announced plans to add three new server production facilities in Silicon Valley to support the development in artificial intelligence, providing robust computational support for building and iterating AI large models. Dell, on the other hand, stated last month that revenue from servers used for AI training/inference tasks more than doubled compared to the previous quarter, with a significant increase in backlogged orders.

Dell is committed to providing servers optimized for AI workloads, featuring high-performance computing capabilities and efficient resource integration that lead the industry, along with the latest Nvidia AI GPUs to accelerate AI training and inference processes. Super Micro Computer has long been known in the server field for its customized server solutions, allowing hardware configurations to be optimized according to specific customer needs. This customization capability is crucial for startups like xAI.

According to a report from the renowned research firm IDC, the total global investment in AI IT systems covering software, hardware, and other related services centered around artificial intelligence is only about $132.49 billion in 2022. However, the firm expects this figure to grow to $512.42 billion by 2027. With a Compound Annual Growth Rate (CAGR) as high as 31.1%, and will fully focus on the generative AI field similar to ChatGPT.**

According to the latest IDC survey, it is estimated that by 2027, 45% of enterprises will master and use generative AI tools to jointly develop digital products and services, striving to double their revenue scale compared to competitors. IDC also predicts that the global generative AI market may have a CAGR of 85.7%, and by 2027, the global generative AI market size will be close to $150 billion. All of these indicate that Dell and Super Micro Computer, leaders in the AI server field, are expected to continue to benefit from this unprecedented AI boom in the coming years