Dell To Build AI Factory With Nvidia, Eyes Powering Elon Musk’s xAI Grok

Coingapestaff
June 19, 2024 Updated May 28, 2025
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Elon Musk xAI Secures $6B To Boost Generative AI Expansion: Details

Highlights

  • Dell and Nvidia are working together to build an AI factory.
  • The decision comes to support Elon Musk's AI startup xAI and its generative AI model Grok.
  • Elon Musk's decision fall in line with his motives to make X an everything app.

Dell Technologies Inc., an American technology giant, has recently revealed that it is building an AI factory with Nvidia, a pioneer in GPU and AI super chip production. The collaborative efforts between the two entities comes as an effort to boost Grok, a generative AI model brought by Elon Musk’s artificial intelligence startup, xAI.

The news, as revealed by Michael Dell, Chairman and CEO of Dell Technologies, promptly nabbed significant attention across the industry, aligning with the heating-up of the global race for AI. So, let’s delve deeper into this announcement.

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Michael Dell Says AI Factory With Nvidia In The Works

In a post shared by the Dell CEO on X today, June 19, he stated, “We’re building a Dell AI factory with Nvidia to power Grok for xAI Elon Musk.” The collaborative venture with Nvidia possibly aims to leverage the chip manufacturing giant’s AI-related services.

Notably, Nvidia has recently emerged as a pioneer in the industry, beating Microsoft in valuation with a $3.335 trillion market cap. This surge in value comes against the backdrop of the global AI boom and demand for GPUs in recent years.

Moreover, Elon Musk’s artificial intelligence startup’s plans to leverage Nvidia and Dell further come as a mover to capitalize on emerging opportunities across the AI sector in tandem with Nvidia’s growth. xAI’s chatbot, Grok, appears to be preparing for a revolutionary upgrade.

Also Read: SEC Reveals Montenegrin PM Among Terraform Labs’ Early Investors, Here’s All

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Elon Musk Forges Ahead With AI

Meanwhile, in light of Musk’s ventures to make X an everything app, the latest development has echoed a buzz. Notably, X already boasts Grok on its platform, while Grok utilizes data all over the social media platform to function seamlessly. The abovementioned mover is anticipated to upgrade the user experience even more.

Meanwhile, additional information on the matter is much-awaited, whereas the community is also awaiting the comments of American entrepreneur Musk. It’s worth noting that X also revealed plans to launch a Venmo-like payments feature on its app X recently, further solidifying motives to become an everything app.

Also Read: LayerZero (ZRO) Braces For Airdrop Amid Major Listings, Here’s Everything

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.