X Server Win Demonstrates HPE's AI Potential
Hewlett Packard Enterprise (HPE) has won a $1 billion deal to provide Elon Musk’s X social network (fomerly Twitter) with AI servers, advancing its push into a market area where it seems strongest—even as HPE maintains high hopes for its future in networking.
As reported by Bloomberg, HPE was chosen for the X deployment over competitors Dell Technologies and Supermicro, which both placed bids for the job. Dell’s and Supermicro’s servers populate Musk’s 100,000-GPU Colossus supercomputer in Memphis, Tenn., which is used to train its xAI Grok chatbot for X customers. Since both Dell and Supermicro have market share leads over HPE, according to Bloomberg Intelligence, the recent win could be a much-valued vote of confidence.
HPE's Liquid Cooling Featured
HPE may have been helped in the X proposal by its liquid-cooling technology, according to Bloomberg analyst Woo Jin Ho, though he also warned that large deals can negatively impact margins (more on that in a moment).
The liquid cooling was highlighted by HPE CEO Antonio Neri in the company's Q4 earnings call. He noted that HPE has paired its liquid cooling with its Ethernet-compatible Slingshot AI cluster fabric, which supports 400-Gbit/s data rates. "These innovations are enhancing the performance of our AI systems and supercomputing product lines, differentiating us from the competition," Neri said.
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