Dell and Nvidia Unite: Building AI Factory for Elon Musk’s xAI and Chatbot Grok

Dell and Nvidia are teaming up to create an AI factory for Elon Musk’s xAI, as announced by Dell CEO Michael Dell on social media. This project will help power xAI’s chatbot, Grok. Last month, xAI also revealed plans to build a supercomputer by next fall, showing how quickly their AI capabilities are growing.

Dell and Supermicro will play significant roles in assembling the supercomputer for xAI. Elon Musk revealed that Dell will assemble half of the racks while Supermicro, a top server and storage vendor, will handle the other half.

Nvidia’s role, although not officially detailed, is expected to involve their cutting-edge technology, particularly the xAI 100k Nvidia H100 liquid-cooled training cluster, which Musk mentioned would be available soon.

Dell and Nvidia Unite: Building AI Factory for Elon Musk's xAI and Chatbot Grok
Dell and Nvidia Unite: Building AI Factory for Elon Musk’s xAI and Chatbot Grok

Nvidia’s collaboration with Musk extends beyond the H100 clusters. Musk is reportedly aiming for a larger cluster using around 300,000 Nv B200s, connected by Nvidia’s 800 Gb/s ConnectX-8 NICs, which are expected to launch next summer.

Additionally, Musk reassigned 12,000 H100 GPUs from Tesla to xAI, indicating a significant commitment to Nvidia’s technology for xAI’s development, though Nvidia GPUs will continue to be used for Tesla’s Full Self-Driving system.

Concurrently, Musk’s relationship with OpenAI has deteriorated significantly. He filed a lawsuit against OpenAI for deviating from its original mission and breaching their agreement but dropped the case after OpenAI challenged it.

This legal conflict has strained Musk’s ties with OpenAI, yet it might lead to a potential collaboration with Ilya Sutskever’s newly formed Safe Superintelligence Inc. (SSI), following Sutskever’s departure from OpenAI due to concerns over the company’s direction.

Rumors suggest that top officials, including Sutskever, left OpenAI due to disagreements with CEO Sam Altman’s aggressive approach to AI development. As Musk’s partnership with OpenAI seems irreparable, there is speculation about future collaborations between SSI and xAI, given their shared concerns and goals in responsible AI development.

Michael Manua
Michael Manua
Michael, a seasoned market news expert with 29 years of experience, offers unparalleled insights into financial markets. At 61, he has a track record of providing accurate, impactful analyses, making him a trusted voice in financial journalism.
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