Dell Technologies Inc shares rose in premarket trading yesterday after chief executive officer Michael Dell said the company is building a “Dell AI factory” for Elon Musk’s start-up xAI alongside Nvidia Corp.
“We’re building a Dell AI factory with Nvidia to power Grok for xAI,” Michael Dell wrote in an X post on Wednesday.
Musk responded to comments about the post, saying that Super Micro Computer Inc would also be providing servers. Super Micro’s X account replied to Musk with a celebration emoji and a link to its Web site.
Photo:AFP
Dell and Super Micro are increasing their server capacity to win more business from companies building and working with artificial intelligence (AI) programs, which require more data processing power.
Super Micro announced earlier this week that it plans to add three new facilities in Silicon Valley to support AI growth. Dell said last month that revenue from its servers equipped to handle AI tasks more than doubled last quarter from the period before and its backlog jumped.
Musk launched xAI, an AI start-up, in July last year as an answer to OpenAI and its wildly popular chatbot, ChatGPT. The start-up launched its ChatGPT competitor Grok in November last year and raised US$6 billion in venture capital funding last month at a pre-money valuation of US$18 billion.
Separately, OpenAI cofounder and former chief scientist Ilya Sutskever on Wednesday said that he was starting a new AI company.
Sutskever, who left the ChatGPT maker last month, said in a social media post that he has created Safe Superintelligence Inc with two cofounders. The company’s only goal and focus is safely developing “superintelligence” — a reference to AI systems that are smarter than humans.
The company vowed not to be distracted by “management overhead or product cycles,” and under its business model, work on safety and security would be “insulated from short-term commercial pressures,” Sutskever and his cofounders Daniel Gross and Daniel Levy said in a prepared statement.
The three said Safe Superintelligence is a US company with roots in Palo Alto, California, and Tel Aviv, “where we have deep roots and the ability to recruit top technical talent.”
Additional reporting by AP
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