While others debate the future of AI, Elon Musk is leading the charge by pouring unprecedented amounts of money into NVIDIA’s chips, driving demand in ways no other AI company has. AI has been the buzzword for years now, with some wondering if the hype will eventually fade. However, major announcements from top AI players like Musk’s xAI suggest that the AI race is just heating up, and the need for AI chips continues to soar. Musk, for instance, is acquiring massive quantities of NVIDIA’s AI hardware, including the powerful Blackwell-based GB200 and GB300 AI clusters. These units, with a total of 550,000, are a key part of xAI’s Colossus 2 AI cluster, set to go live soon.
This project alone is expected to cost around $2 trillion, a staggering amount that underscores Musk’s serious commitment to AI.
Despite criticism and skepticism about AI’s future, Musk is forging ahead with plans to ramp up computing power to levels never seen before. In just five years, xAI plans to have 50 million units of AI compute power running, a monumental feat that could be worth up to $2 trillion depending on exclusive pricing from NVIDIA. If successful, this would give xAI an astronomical 200 exaFLOPS of computing power-20 times more than the fastest supercomputer in the world. Meanwhile, other tech giants like OpenAI and Meta are making similar moves, further solidifying the AI arms race. In a world where demand for AI chips continues to outstrip supply, NVIDIA stands at the forefront, with plenty of orders still coming its way.
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