Dell, Nvidia, and SMCI Team Up to Empower Musk’s Grok AI Factory

  • Dell Technologies partners with NVIDIA to build an AI Factory for Grok, an AI model by xAI.
  • Grok-1.5V, a multimodal AI chatbot, excels in text and visual data processing.
  • Super Micro Computer Inc joins the collaboration with advanced server technology.
  • Market response: Dell and SMCI stocks rise over 3%.
  • xAI plans a supercomputer with Oracle, leveraging up to 100,000 Nvidia H100 GPUs by 2025.

Main AI News:

In a strategic move led by CEO Michael Dell, Dell Technologies Inc. has forged a partnership with NVIDIA Corporation to establish an AI Factory aimed at enhancing the capabilities of Grok, an AI model developed by xAI, Elon Musk’s venture.

Grok, a generative AI chatbot, was developed in response to the growing popularity of ChatGPT, a product of OpenAI co-founded by Musk. This AI model, based on a large language model, excels not only in text processing but also in analyzing a wide array of visual data such as documents, diagrams, charts, screenshots, and photographs.

The latest iteration, Grok-1.5V, represents xAI’s first-generation multimodal model introduced in April. Notably, Grok has been lauded for its advanced spatial understanding in real-world scenarios, surpassing competitors in benchmarks like RealWorldQA.

Elon Musk hinted at another key collaborator, “SMC,” referring to Super Micro Computer Inc (NASDAQ), a prominent server manufacturer renowned for its partnerships with leading chip companies like Nvidia and its innovative liquid-cooling technology. Confirming this collaboration to Reuters, SMCI expressed its commitment to enhancing xAI’s capabilities.

The announcement has spurred positive market reactions, with both Dell and SMCI stocks rallying over 3%.

Earlier this month, xAI unveiled plans to build a supercomputer dubbed the “Gigafactory of Compute,” slated for completion by fall 2025. This ambitious project, in collaboration with Oracle, aims to bolster the computational prowess of the Grok AI chatbot.

Set to leverage up to 100,000 Nvidia H100 GPUs based on the Hopper architecture, the upcoming supercomputer could potentially surpass existing GPU clusters in both scale and performance, marking a significant stride towards dominance in AI computational capabilities.


This collaboration among Dell, Nvidia, and SMCI, aimed at enhancing the capabilities of xAI’s Grok AI model, underscores a strategic push towards advancing AI technology in both text and visual data processing. The partnership’s ambitious plans for a supercomputer, bolstered by Oracle and Nvidia, signal a significant competitive move in the AI market, potentially setting new benchmarks for computational power and application versatility.