(Reuters) - Hewlett Packard Enterprise ( HPE ) 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 ) and Super Micro Computer ( SMCI ) had also bid to sell the equipment.

Hewlett Packard Enterprise ( HPE ) declined to respond to a Reuters request for comment.

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

Shares of HPE were up 1% in afternoon trade.