xAI, Elon Musk’s AI startup, has shifted all AI server orders from troubled Supermicro to Dell, reports UDN.com. Dell, already among the largest makers of servers, reportedly benefits from this decision, just like its suppliers, Inventec and Wistron. In contrast, losing a multi-billion business to rivals amid a potential NASDAQ delisting could be another devastating blow for Supermicro.
Dell and Supermicro used to supply Musk’s companies, including xAI and Tesla. Musk even appeared publicly with Supermicro’s CEO, Charles Liang, who revealed that xAI had made substantial purchases of Supermicro’s liquid-cooled AI servers. However, after the U.S. Department of Justice began to probe Supermicro for accounting manipulations and alleged export violations to China and Russia and its stock plummeted 35% in one day, UDN says Musk’s companies decided to shift orders away from the troubled company.
