Elon Musk’s AI startup, xAI, is building a supercomputer powered by Nvidia’s chip technology to enhance its operations.
Greater #compute power is the key to unlocking more capable #AI
🤔Elon musk is clear about it…
💸as he plans to invest in a supercomputer with 100K GPUs, called a "gigafactory of compute" to accelerate the development of his Grok #AIchatbothttps://t.co/MC0ntvCq3Q pic.twitter.com/2v2OZI5Kof
— Substrate.ai (@Substrate_AI) May 27, 2024
Musk’s announcement caused Nvidia shares to rise by 3.2% in pre-market trading, representing another substantial order for the company and highlighting the growing demand for AI investment in the tech industry. xAI has also partnered with Oracle for access to data centers and computing chips.
Enhancing AI with Nvidia technology
Oracle recently signed a new cloud computing infrastructure deal with Nvidia, planning to increase capital spending in the coming year.
Elon Musk plans #xAI supercomputer, The Information reports https://t.co/jL9v03HTAw << Musk said he wants to get the proposed supercomputer running by the fall of 2025, as per the report, adding that xAI could partner with Oracle (ORCL.N) to develop the massive computer. pic.twitter.com/slHiJLrsox
— Jennifer Stirrup #MBA Topics: #AI #Data #Strategy (@jenstirrup) May 28, 2024
The excitement around Nvidia’s AI chips extends to other major players in the chip-making industry, such as AMD, Intel, and Qualcomm, which are all seeing gains in their stock prices. The collaboration between xAI and Nvidia shows the strategic moves companies are making to improve their AI capabilities. As AI remains a key investment area for many large corporations, the demand for advanced chip technology stays strong.
