Elon Musk: Juggling EVs, Social Media, and Now an xAI Supercomputer
Elon Musk, the CEO of Tesla and SpaceX, is known for his ambitious ventures and latest reports suggest that he has yet another major project on his plate. According to an investor presentation obtained by The Information, Musk is raising funds for an xAI supercomputer, which he refers to as a “gigafactory of compute.” This new development comes after Musk’s recent endeavors in rebranding one of the internet’s biggest social media platforms as “X” and launching satellites into space.
The xAI supercomputer, as revealed in the investor presentation, will be critical for training the next version of xAI’s chatbot, Grok. Currently integrated into X, the former Twitter, Grok is a prominent AI feature that Musk aims to enhance further. To power this project, Musk plans to connect 100,000 Nvidia H100 GPUs, which is four times larger than the current biggest GPU cluster. This substantial increase in computing power will enable the training of Grok 3, following the successful training of Grok 2 using 20,000 Nvidia H100 GPUs earlier this year.
In order to realize this ambitious plan, Musk may partner with Oracle. The Information reported that xAI was close to finalizing a $10 billion deal with Oracle to rent its AI servers. Musk had previously collaborated with Oracle to train the Grok model but required more Nvidia GPUs than Oracle could provide at the time. Therefore, teaming up with Oracle would allow xAI to access the necessary resources to build the xAI supercomputer.
Musk’s recent fascination with AI is evident in his involvement with xAI. Musk co-founded OpenAI, an influential AI research company, before establishing xAI in July 2023. The launch of Grok, xAI’s first product, integrated into Musk’s social media platform X, was a significant milestone. However, it hasn’t been without its challenges. Grok’s integration into X’s trending topics feature has led to the dissemination of misinformation and the creation of fake headlines based on users’ satirical or fake news posts.
While Musk’s foray into AI technology is undoubtedly exciting, it raises concerns for Tesla investors who expect him to focus on the electric vehicle company’s challenges. Tesla has faced declining car sales in recent months and had to lay off thousands of employees. Additionally, the recall of the Cybertruck due to an acceleration pedal issue further highlights the need for Musk’s attention on Tesla’s operations.
However, if Musk’s xAI supercomputer project succeeds, it could alleviate some of the pressures he faces. The expected completion date for the supercomputer is fall 2025, offering a potential solution to Musk’s current problems. As Elon Musk continues to innovate across various industries, his ability to balance multiple endeavors will be closely watched by investors and tech enthusiasts alike.