Subj : HPE may have been beaten Supermicro and Dell to win a $1bn AI con
To   : All
From : TechnologyDaily
Date : Sat Jan 18 2025 18:45:04

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

Date:
Sat, 18 Jan 2025 18:33:00 +0000

Description:
HPE beat Supermicro and Dell to win a $1bn contract to supply Elon Musk's X 
with AI servers

FULL STORY
======================================================================Bloomber
g reports the contact is for Elon Musk's X social media platform xAi's 
Colossus uses 100,000 Nvidia H100 GPU and doesn't seem to be part of the 
contract Supermicro has had troubles, but is still a major player in AI 
hardware 

The rising demand for computing power to support AI workloads has fueled 
rapid growth in the market for high-powered servers. It is a lucrative 
business for firms like Dell, Supermicro, and Hewlett Packard Enterprise, who 
have all seen increased demand for their high-performance server products in 
recent years. 

A report from Bloomberg claims HPE has secured a massive deal worth more than 
$1 billion to supply Elon Musks X social network with servers optimized for 
artificial intelligence work. 

The report doesnt specify exactly how the servers will be used, but since its 
for X, theres a good chance some of the capacity will be for Grok, the social 
networks AI chatbot. At the end of 2024, X announced that it was rolling out 
Grok-2 to all users for free, and its fair to conclude that extra capacity 
will require more server infrastructure. Dell and Supermicro outbid 

 Bloomberg says Xs agreement with HPE was reached in late 2024, according to 
people familiar with the matter. 

Musks companies, including xAI and Tesla, are major buyers of AI hardware. 
The Colossus supercomputer, built by xAI in Memphis, was previously declared 
by Musk to be the " most powerful AI training system in the world ." The 
billionaire stated it was built "from start to finish" in just 122 days. 

Colossus uses 100,000 Nvidia H100 GPUs, but there are plans to massively 
expand its operations. Supermicro has faced some challenges recently, 
including the resignation of its auditor and other related matters. However, 
as MarketWatch reports, it remains a "major player in the AI revolution" and 
recently established operations in Memphis to support xAI's goal of building 
a supercomputer facility with 1 million GPUs. 

Supermicro and Dell provided the servers for Colossus originally, and 
Bloomberg says that while both firms did bid to supply the equipment for this 
new venture they were ultimately unsuccessful. 

 Bloomberg s report notes, HPEs liquid-cooling technology may have played a 
role in the win, wrote Woo Jin Ho, an analyst at Bloomberg Intelligence. 
While good for sales, larger deals can be a drag on margins, he added. You 
might also like Tesla will spend billions on Nvidia and AMD GPUs and CPUs 
Elon Musk shows us what $1 billion worth of AI GPUs looks like xAI cluster is 
now the most powerful AI training system in the world



======================================================================
Link to news story:
https://www.techradar.com/pro/hpe-may-have-been-beaten-supermicro-and-dell-to-
win-a-usd1bn-ai-contract-but-its-not-for-the-colossus-supercomputer


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