HPE may have been beaten Supermicro and Dell to win a $1bn AI contract, but it’s not for the Colossus supercomputer

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David Wilson
Mon, 20 Jan
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Bloomberg report reveals that Elon Musk’s X social media platform has secured a significant deal with Hewlett Packard Enterprise (HPE) worth over $1 billion for high-powered servers optimized for AI workloads. The servers are expected to support X’s AI chatbot, Grok, following the rollout of Grok-2 to users for free by the end of 2024. HPE’s liquid-cooling technology played a role in winning the contract, outbidding competitors Dell and Supermicro. Musk’s xAI company, known for the Colossus supercomputer utilizing 100,000 Nvidia H100 GPUs, continues to drive advancements in AI hardware. Despite recent challenges, Supermicro remains a key player in the AI hardware market and expands operations in Memphis to support xAI’s ambitious supercomputer facility plans involving 1 million GPUs.

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