Jan 10 (Reuters) - Hewlett Packard Enterprise (HPE.N) , opens new tab has struck a deal worth over $1 billion to provide Elon Musk's social media platform X with servers optimized for artificial intelligence work, Bloomberg News reported on Friday, citing people familiar with the matter.

The agreement was reached late last year, the report said, adding that competitors Dell Technologies (DELL.N) , opens new tab and Super Micro Computer (SMCI.O) , opens new tab had also bid to sell the equipment.

Hewlett Packard declined to comment on the report.

AI servers have been seeing strong demand from enterprises looking for hardware capable of powering artificial intelligence applications. Musk's companies, including Tesla (TSLA.O) , opens new tab and xAI, have emerged as major customers for such hardware.

Shares of HPE were up 1% in afternoon trade.

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https://www.reuters.com/markets/deals/hpe-secures-1-bln-ai-server-deal-elon-musks-x-bloomberg-news-reports-2025-01-10/