AUSTIN (KXAN) — Elon Musk’s xAI is one step closer to becoming a reality after Dell Technologies Inc. secured a deal worth more than $5 billion, according to Bloomberg. Dell is expected to provide Musk’s AI startup company with servers to optimize “artificial intelligence work.”

Those servers will contain Nvidia Corp. GB200 semiconductors, according to Bloomberg, and said some of those details “are being finalized and still may change.”

According to Bloomberg, Dell and Nvidia declined to comment. xAI also did not respond to a request for comment.

Musk’s AI startup company’s main product is a chatbot known as Grok, which “has primarily been available to paying users of X,” formerly known as Twitter, according to Bloomberg.

An analyst at Bloomberg Intelligence said the deal with xAI “would firmly establish the company as a leading AI-server provider and boost sales, though the impact on profitability is less clear.”

The Bloomberg article said xAI in Memphis already has a supercomputer project that is being built with a “mix of Dell and Super Micro servers.” Dell said in December that it “deployed tens of thousands of graphics processing units, or GPUs. Bloomberg described GPUs as “key chips to power AI workloads.” Furthermore, Bloomberg said Nvidia was the “top maker” of those GPUs.

“Analysts expect Dell will have shipped more than $10 billion of AI servers in the fiscal year ending last month and project that value will jump to $14 billion in the fiscal year ending in January 2026. Dell is scheduled to report fiscal fourth-quarter earnings on Feb. 27, with the AI server business a major focus for investors,” the article said.