Dell Technologies is gaining market share in the AI server sector, following a shift by companies like Tesla and Nvidia from Super Micro Computer to Dell. Hindenburg Research reported that Tesla, previously exclusive to Super Micro, has now signed major deals with Dell, impacting Super Micro’s market position.
Nvidia’s CEO, Jensen Huang, praised Dell’s expertise in building large-scale enterprise systems, further supporting the shift. Additionally, Dell’s founder and CEO, Michael Dell, recently announced a partnership with Nvidia to build an AI factory to power Grok, an AI chatbot developed by Elon Musk’s xAI. Dell and Super Micro are now collaborating to assemble the racks for xAI’s supercomputer.
Dell’s increasing presence in the AI space reflects its focus on this growing sector. The company, originally a PC vendor, now views AI as its most significant opportunity, introducing AI-enabled PCs and servers supporting Nvidia’s latest chips. Despite a recent drop in its share price after Q1 earnings, Dell continues to pursue growth in the AI market.