Elon Musk’s X reaches $1 billion artificial intelligence server deal with HP: Report – HP (NYSE:HPE), Dell Technologies (NYSE:DELL)

Hewlett Packard Enterprise HP A deal reportedly worth over $1 billion has been struck to provide servers optimized for artificial intelligence Musksocial media platform, X.

what happenedBloomberg reported on Friday that the deal between HP and X was finalized late last year, citing people familiar with the matter.

These servers are tailor-made for artificial intelligence applications, an area that is witnessing strong demand from enterprises. competitors Dell Technologies Dell and Super Micro Computer Corporation SMCI Also competing for contracts.

The market for artificial intelligence servers has been expanding, and companies are increasingly looking for hardware that can support artificial intelligence applications. Companies under Musk’s leadership include Tesla Inc. Tesla and xAI have become important customers of this type of hardware.

why it’s important: Musk’s interest in artificial intelligence is well-documented. In a recent discussion, Musk predicted that artificial intelligence will reach human-level capabilities by 2029. 10,000 times,” Musk said.

His artificial intelligence startup xAI is also making great progress, and Musk announced that it will soon integrate its Grok chatbot into Tesla vehicles. Musk shared the update during a livestream on X and said: “Tesla’s Grok is coming soon. You will be able to talk to your Tesla and make any request.

Meanwhile, Musk’s social media platform X is facing competition from Bluesky, which is reportedly valued at nearly $700 million.

Price Action: HPE shares rose 0.23% on Friday, according to Benzinga Pro data.

The latest analyst ratings for Hewlett Packard Enterprise are provided by Deutsche Bank, Loop Capitaland barclays bank On December 19th, December 9th and December 6th respectively. The average price target for these companies is $25.33, and the ratings indicate an implied upside of 14.01%.

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