HPE secures $1 billion AI server deal with X

Traders Union
All News
Financial News
HPE clinches $1B contract

All news

Top Stories

Editors' Picks

Stocks

Crypto

Economics

Currencies

Commodities

Business & Wealth

Market Voices

Mikhail Vnuchkov

11.01.2025

HPE secures $1 billion AI server deal with X — HPE wins major contract to supply AI servers for social network X

Hewlett Packard Enterprise Co. (HPE) has secured a deal exceeding $1 billion to supply Elon Musk’s X, the social network formerly known as Twitter, with servers tailored for artificial intelligence (AI) workloads.

The deal follows a bidding process involving key competitors Dell Technologies Inc. and Super Micro Computer Inc. Though HPE has traditionally been viewed as trailing behind Dell and Super Micro in the AI server space, this contract signals a significant vote of confidence in its capabilities, reports Bloomberg.

HPE’s advanced liquid-cooling technology, a key feature for AI-intensive hardware, may have been instrumental in clinching the deal, according to Bloomberg Intelligence analyst Woo Jin Ho.

Demand for high-performance AI servers has surged as companies like Musk’s X and Tesla Inc. expand their AI-driven operations. X has primarily used AI to support products like Grok, a chatbot from Musk’s AI startup xAI, which integrates directly with the social media platform. The Memphis-based supercomputer project for xAI has previously utilized a mix of Dell and Super Micro servers.

Industry impacts and market response

The announcement had a mixed impact on the stock market. HPE shares rose as much as 4.3% before closing less than 1% higher at $22.08. In contrast, Dell’s shares fell 3.8% to $114.77, while Super Micro remained relatively unchanged at $32.60.

This deal positions HPE as a stronger contender in the rapidly growing AI infrastructure sector. AI servers, equipped with cutting-edge chips from Nvidia Corp., represent a booming market segment. Spending on data centre infrastructure surged 34% to $282 billion in 2024, according to Synergy Research Group, with Nvidia emerging as a dominant player driving server demand.

HPE’s Chief Financial Officer, Marie Myers, emphasized during a December earnings call that AI adoption is set to expand further in 2025, although competition will remain fierce. The collaboration with Musk’s X highlights the company’s ambition to capture a larger share of the AI server market.

Recently we wrote, that Elon Musk’s recent change to his X account name to "Kekius Maximus" has set off a firestorm of speculation in the cryptocurrency world.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.

Did you like the article?

HPE secures $1 billion AI server deal with X

Industry impacts and market response

Editor's Picks for You