Pullback is an Opportunity Thanks to Continued Demand for AI Servers!
xAI aims to increase the capacity of the supercomputer to over 1 million GPUs
The AI market potential is expected to grow from $91 billion to $124 billion by 2027
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The release of the cost-effective AI models from DeepSeek caused a pullback in Dell Technologies (DELL) due to expected reductions in AI infrastructure spending. However, I increasingly view this as a buying opportunity: xAI has used 200,000 GPUs for training the AI chatbot Grok 3, which was introduced on February 18, on the Supercomputer Colossus. Dell supplies the server racks and is reportedly close to securing an order worth over $5 billion, according to Bloomberg. The order backlog for AI servers recently grew sequentially from $3.8...
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