Nvidia and Dell will work together to build new xAI infrastructure

Dell Technologies (DELL) has announced a new partnership with Nvidia (NVDA) to build an AI factory for xAI, Elon Musk’s artificial intelligence company. In a parallel development, Musk indicated that xAI will also explore the use of Super Micro Computer (SMCI) server solutions.

Morning Brief hosts Brad Smith and Madison Mills explain the details.

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This post was written by Angel Smith

Video transcription

Dell, the company’s shares are rising after the company’s CEO announced on X that it will partner with Video to build an AI factory for Musk’s Xa I Super Micro stock.

Also getting a boost after Elon Musk responded that it will also supply servers.

And it’s really interesting to see Dell Brad become the latest company to find a way to advance to the Invidia rally here.

It brings to mind this question, the idea that if you find a way for all these different companies to invest in AI, additional AI cap X.

At what point does that dilute the overall picture, then you’re going to have so much competition in finding a way to not only add investment in AI, but also specifically to partner with NVIDIA.

At what point do we no longer see this being a bullish signal for stocks if they drop the NVIDIA name?

Yes absolutely.

I mean, I think for Dell, they also want to make sure that investors see AI coming to fruition more for their company, especially with some of the big partnerships like this, where NVIDIA is just a feather in their cap.

But for Dell, for Super Micro, I think this gives them a little bit more fanfare that they could potentially add to what they’ve already told or try to sell to the streets with their own AI ambitions and making that is just a little more realistic in terms of gross.

I mean, they tried to make this work for X because it seems like almost a year ago now.

I mean, you think back to the acquisition that ended up happening where Elon Musk was able to acquire the former Twitter now

X was meant to be the first piece of all that.

But Grok is, is, is actually within the platform right now.

I don’t know how many people use it.

It is no longer a listed company.

So they don’t have to tell us how many people are paying for subscriptions or have signed up or are actively using G Roc.

So we don’t get those updates, but at least it’s on the side panel for me. I haven’t even tried cooking it yet, but you’re exactly right about the timing.

Last November, the startup launched Roc and raised $6 billion in venture capital funding to support that effort.

But there is a question whether or not it has been used by consumers like us.

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