HPE Scores Major AI Server Contract from Elon Musk's X

Hewlett Packard Enterprise (HPE) appears to have secured a significant contract worth over $1 billion to provide AI-accelerating servers to Elon Musk's X, formerly known as Twitter. This deal has sparked interest as it showcases HPE's involvement in Musk's ambitious ventures in artificial intelligence.

Reports from Bloomberg suggest that this agreement marks another step in Musk's ongoing efforts to push the boundaries of AI technology. Specifically, it is believed that the servers supplied by HPE will either enhance operations at X or be utilized by Musk's AI company, xAI.

Understanding the AI Landscape at X and xAI

Musk's xAI is known for developing the generative Grok model, which is primarily accessible to users through X. Currently, xAI operates a supercomputer called Colossus in Memphis, Tennessee, powered by a mix of Dell and Supermicro systems that incorporates 100,000 GPUs. This system is set to undergo an upgrade with an additional 100,000 GPUs, and there are plans to expand its capacity to a total of 1 million GPUs in the future.

The servers from HPE are expected to play a crucial role in running AI inference and training tasks, helping both X and xAI as they strive to improve user experiences and expand their offerings. Recently, xAI has launched various features, including new image-generation capabilities and a standalone Grok app for iOS, which are becoming available to a broader audience beyond previous limitations. Such developments will likely require additional computing resources to support the increasing demand and complexity of future models.

HPE's Role and Expertise in AI Computing

HPE's reputation in the field of accelerated computing is well-established. The company’s Cray division is responsible for creating some of the world's most powerful supercomputers, including systems such as El Capitan, Frontier, and Aurora, which rank among the top three in global computing power.

Recently, HPE introduced a new line of liquid-cooled GPU systems, offering a choice of Nvidia, AMD, or Intel GPUs for their configurations. Although details regarding which specific GPUs X has chosen have not yet been disclosed, it is worth noting that Musk's earlier projects have primarily utilized Nvidia technology.

Potential Implications Beyond the Partnership

Shifts in X's supplier choices, like opting for HPE, may also reflect a broader strategy to diversify its technological partnerships following notable controversies, such as the accounting issues surrounding Supermicro.

As this situation continues to develop, inquiries have been made to both HPE and X for comments regarding this partnership, but no official responses were available at the time of this report.

AI, Elon, HPE