HPE Wins Blockbuster $1B AI Server Deal With Elon Musk’s X: Report

'This is an industry-changing deal for HPE’s AI business and HPE’s AI partners,' says Advizex CEO C.R. Howdyshell. 'I’m sure to win a deal like this with Elon Musk and X was extremely challenging.'

Hewlett Packard Enterprise has won a $1 billion AI server contract with Elon Musk’s X social media platform, according to a Bloomberg report.

The blockbuster deal was reached last year, according to Bloomberg, citing sources who asked to remain anonymous because the deal was private.

HPE declined to comment.

X could not be reached for comment.

The highly prized contract with X is a vote of confidence for the HPE AI server business which was up 16 percent in the most recent quarter to $1.5 billion.

HPE shares were up 25 cents or one percent to $22.33 in after-hours trading. The 52-week high for HPE shares is $24.24.

C.R. Howdyshell, CEO of Advizex, a Fulcrum IT Partners company and a leading HPE AI solution provider, called the big win an “industry-changing deal” for HPE’s AI business and HPE’s AI partners.

“I’m sure to win a deal like this with Elon Musk and X was extremely challenging,” said Howdyshell. “These are hard deals to get done. This just reinforces the opportunity we have as an HPE partner to deliver AI solutions.”

Even though the X deal looks like a “once-in-a-lifetime opportunity,” Howdyshell said he sees more blockbuster AI deals ahead in 2025. “Our OEM partners are telling us they see this AI business as a three-year TAM (Total Addressable Market) of $1 trillion,” he said.

Advizex has seen first-hand the power of the HPE-Nvidia portfolio with its $40 million deal that it closed last year with bitcoin miner and next generation infrastructure platform provider Hut 8. That deal was for 125 HPE Cray XD670 supercomputer nodes with 1,000 Nvidia H100 GPUs.

Howdyshell said he is pumped up about the HPE and Nvidia partnership and the opportunity ahead for Advizex. In fact, Advizex and the Fulcrum team, including AI pioneer Razor, which is part of the Fulcrum portfolio, met with Nvidia this week for a two-day sales and technical briefing. “Working hand-in-hand with Nvidia is a huge boost for our business,” he said. “We are committed to significantly expanding our Nvidia partnership from GPUs to networking and software and services.”

In fact, Howdyshell said, he expects as much as one-third of Advizex’s revenue this year could come from the AI business. “This is our number one area of focus for opportunity and growth in 2025,” he said. “This represents more than just GPUs. It is networking, software and services.”

Key to the Advizex go-to-market is the Razor team, which has deep vertical market AI expertise. “Razor is working hand in hand with Nvidia to drive this AI opportunity with us,” he said.

Advizex is taking scalable Razor AI solutions into all its top vertical markets including manufacturing, healthcare, retail, financial and SLED.

Another big advantage for Advizex in the AI channel battle is its razor-sharp business focus on the opportunity that has resulted from its creation of a new high-performance compute and AI business unit led by Advizex Vice President and General Manager Steve Kucker.

“We have the focus, the talent, the resources, we can tell the story and with the help of our OEMs we are highly confident we are going to be incredibly successful with our AI solutions business,” he said.