Reports indicate that Elon Musk’s artificial intelligence venture xAI is close to finalizing a $5 billion deal with Dell.

The world’s leading computer manufacturer Dell is nearing the end of an agreement with Elon Musk’s artificial intelligence venture xAI. According to a report in Bloomberg, Dell will provide servers worth $5 billion to the xAI company for its artificial intelligence research. It was noted that the two companies are continuing negotiations and the deal is progressing to advanced stages. Under the agreement, Dell will sell servers containing Nvidia’s GB200 semiconductors to Musk’s artificial intelligence venture. Following the news, Dell’s shares approached $117 with an increase of up to 6% on Friday. The artificial intelligence venture had previously used Dell and Super Micro servers in a supercomputer project built in the state of Tennessee in the U.S.

In December, Dell announced that tens of thousands of graphics processing units (GPUs) were used in the project.

The computer manufacturer had reported in November that the three-month order request for artificial intelligence servers amounted to $3.6 billion.