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Elon Musk Chooses HPE for $1 Billion AI Server Deal—What’s Next for Tesla and X?

Daniel Kim Views  

The Hewlett Packard Enterprise (HPE) headquarters logo. (Yonhap News)
The Hewlett Packard Enterprise (HPE) headquarters logo. (Yonhap News)

Hewlett Packard Enterprise (HPE) provides AI servers to X, Elon Musk’s social media platform.

According to an official familiar with the matter, HPE signed a contract worth more than $1 billion on Saturday to provide X with servers specially designed for AI operations.

The official said the agreement was finalized at the end of last year, and its rivals Dell Technologies and Super Micro Computer also bid on this deal.

The demand for AI servers is surging as companies seek to acquire hardware capable of powering AI applications.

Musk’s businesses, including Tesla and xAI, have become major customers for this cutting-edge hardware.

HPE’s stock gained 1% in after-hours trading.

Daniel Kim
content@viewusglobal.com

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