X inks $1B AI server deal with Hewlett Packard Enterprise
What's the story
Hewlett Packard Enterprise (HPE) has bagged a deal worth more than $1 billion to provide artificial intelligence (AI)-optimized servers to Elon Musk's social media platform, X. The deal was signed late last year, after HPE outbid rivals Dell Technologies and Super Micro Computer. Bloomberg News reported this information, citing sources familiar with the matter.
Stock impact
HPE's shares rise
After the deal with X was announced, HPE's shares rose 1% in afternoon trade in the US. This shows that the market has responded positively to the company's successful bid.
Client base
Musk's companies are major customers for AI servers
Musk's many ventures, including Tesla and xAI, have been flagged as major customers for AI server hardware. The development underscores the growing adoption of artificial intelligence technology across industries. The deal with X further cements HPE's position in the industry as a top player in AI-optimized servers.