Dell Technologies announced that its AI Factory platform will incorporate Nvidia’s high-performance GPUs for xAI, an artificial intelligence startup of Elon Musk. Thus, this partnership focuses on the development of AI solutions in the enterprise sector by providing the means for easy implementation and usage.Â
xAI’s Ambitious Growth Plans
Dell’s AI Factory that was unveiled last month is intended to assist organizations in effectively implementing AI. Thus, the platform will allow xAI to train and deploy its AI models, including Grok, in both normal and accelerated configurations with the help of Nvidia’s chips.Â
Founded in March 2023, xAI has quickly emerged as a key player in the AI industry. The San Francisco Bay Area-based company has developed various AI models and tools like Grok and PromptIDE.
Despite its small team of around 50 employees, xAI has raised significant funding, including up to $6 billion in Series B funding. This capital supports ambitious plans, such as constructing Memphis’s world’s largest supercomputer.
Dell and xAI Cooperation, the AI Factory platform with Nvidia’s GPUs in the middle, will become an essential part of the further development of xAI and the use of AI in business.
The AI Factory is a solution that consists of software and services for creating and enhancing AI solutions in various industries and for different tasks, such as content creation and language search, as well as code generation.
Stock Market Impact
Nvidia’s stock price by June 18, 2024, was at $135.58, which was a 3.51% increase for the day and 209% increase for the year. Currently, the company’s market capitalization stands at $3.34 trillion, this shows the increasing need for the company’s AI-targeted chips.Â
Similarly, Dell’s stock price rose 5.01% to $149.15, with its market cap reaching $105.8 billion, as investors recognized the potential of its AI Factory offering.
In these partnerships advanced hardware, software, and services are used in an effort to provide solutions that can rapidly implement artificial intelligence across all industries and in turn change the way businesses operate and move forward.
Also Read: Tesla Shareholders sue Musk for poaching resources to xAI
