The company specializes in high-performance, liquid-cooled servers designed for data center racks, catering to the specific needs of AI applications.
“However, the fact that Xai is moving to Dell speaks to the increasing capability of market-leading server companies to support AI workloads at scale,” said Hyoun Park, CEO and principal analyst at Amalgam Insights. “Dell and HPE are the two true heavyweight players in the server space, and the IT market has always assumed it was only a matter of time before these companies entered and dominated the AI space as well.”
Supermicro has also faced challenges in delivering to hyperscaler and cloud computing clients in the past, which may prompt potential AI customers to explore alternative suppliers.
“With the accounting issues that Supermicro faces, it is likely that Dell will be the big winner in the short term in supporting AI workloads, with HPE picking up additional opportunities in 2025 as well,” Park said.
However, this also raises regulatory concerns, as seen recently with many Big Tech companies.
“As Dell and other AI server vendors gain more market share, they may face stricter compliance requirements and oversight,” said Charlie Dai, VP, and principal analyst at Forrester. “Additionally, their supply chains could come under pressure to meet the increased demand resulting from the order shifts.”
