HPE may have bagged $1B order from Elon Musk's X for AI servers
Hewlett Packard Enterprise has reportedly secured a contract to supply Elon Musk's X, the site better known as Twitter, with more than $1 billion in AI-accelerating servers.
The agreement, first reported by Bloomberg, cites anonymous sources that claim HPE is the latest to benefit from the Tesla tycoon's artificial intelligence ambitions.
Musk's model-building outfit xAI, which makes its generative Grok model mainly available via the billionaire's X, has a combination of Dell and Supermicro systems in its 100,000 GPU Colossus supercomputer in Memphis, Tennessee.
That system is due to be upgraded with an additional 100,000 GPUs, with plans to eventually expand the system to a million accelerators in the future.
These HPE-supplied systems, as reported, are in our view either going to end up at X to run AI inference and training work, or at xAI doing the same. X and xAI are quite tangled; as we said, xAI provides a Claude/ChatGPT/Gemini-like model called Grok that netizens interact with mainly from X. Musk has previously redirected 12,000 Nvidia H100 GPUs originally bound for Tesla to xAI, arguing the parts would have sat unused otherwise.
Last month, X opened Grok and xAI's new image-gen capabilities to all X-ers beyond the previous limitation to X Premium subscribers. This month, xAI also launched a standalone Grok app for iOS. Broader availability of these services likely will necessitate additional compute resources, especially if future Grok models continue to grow in size.
