Nvidia, Dell unite to build new xAI factory

Dell Technologies (DELL) CEO Michael Dell says his company and Nvidia (NVDA) are teaming up to construct an AI factory for xAI, Elon Musk's artificial intelligence venture. In a parallel development, Musk indicated that xAI will also explore utilizing Super Micro Computer's (SMCI) server solutions.

Market Domination anchors Josh Lipton and Julie Hyman break down the stock reactions to the news.

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This post was written by Angel Smith

Video transcript

Dell, the company shares moving higher after the company CEO announced on X that it will partner with video to build an A I factory for Musk's Xa I Super Micro shares.

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

And it's really interesting to see this move from Dell Brad becoming kind of the latest company to find a way to hop on to the Invidia rally here.

It does bring this question to mind for me, this idea that if you have all of these various companies kind of finding a way to invest in A I additional A I cap X.

At what point does that dilute the overall picture, then you're going to have so much competition in kind of finding any way to not only add investment in A I but also specifically to partner with NVIDIA.

At what point do we stop seeing that be a bullish signal for stocks when they drop the NVIDIA name?

Yeah, absolutely.

I mean, I think for Dell, what they're trying to also make sure is that investors see the A I play for their company more to fruition, especially with some of the major partnerships like this, NVIDIA just another feather in their cap.

But for Dell, for Super Micro, I think that this gives them a little bit more of fanfare that they could potentially kind of add on to what they've already been telling or trying to sell the street on with their own A I ambitions and making that just a little bit more real in terms of grok.

I, I mean, they've been trying to make this work for X for it seems like the better part of almost a year now.

I mean, you think back to the acquisition that eventually went through where Elon Musk was able to acquire formerly Twitter now X and make that his platform as he was trying to make an entire super app of many of his businesses here.

X was intended to be kind of the first play of all of that.

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

I don't know how many people use it.

It's not a publicly traded company anymore.

So they're not required to tell us how many people who are, are paying for subscriptions or, or or are signed up or actively using G Roc.

So we don't get those updates, but it sits there on the side panel for me at least II I haven't even tried to cook it yet, but you're exactly right on the timing.

This is last November that the start up launched Roc and raised $6 billion in VC money to support that effort.

But there's a question about whether or not it has been utilized by consumers like us.