Dell saw its shares soar to a session high on Friday after reports emerged that Elon Musk’s xAI is set to finalize a $5 billion deal for artificial intelligence servers with the tech giant.

According to a Bloomberg report, which cited unnamed sources, the servers will feature Nvidia GB200 graphics processing units, which are expected to be delivered later this year.

Several manufacturers of data center equipment have been experiencing an increase in sales due to rising demand for AI training and operational resources. Recently, Dell disclosed having received $3.6 billion in orders for AI servers in the third quarter of fiscal 2025. The company’s overall revenue for the quarter that ended on November 1 reached $24.37 billion, reflecting a 10% increase compared to the previous year.

In December, xAI announced a new funding round totaling $6 billion, aimed at acquiring GPUs. As reported by CNBC, this funding is intended for purchasing 100,000 Nvidia chips for its data center in Memphis. Additionally, the Grok assistant, developed by xAI, is now accessible for users on the social media platform X, owned by Musk.

Last summer, Musk noted that Nvidia, X, and xAI played significant roles in launching a data center filled with GPUs in Memphis, Tennessee.

Read the complete Bloomberg article here.

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