Tech visionary Elon Musk continues to push into artificial intelligence. As he revealed in an interview, the companies he stored will probably continue to order chips from Nvidia.
• Xai builds more huge chip center
• Elon Musk Provides further chip orders for Nvidia and other semiconductor manufacturers
• Musk sees innovation advantage on the USA
In mid-May, Elon Musk’s AI infrastructure Colossus, which the billionaire, as the most powerful training cluster in the world, reaches her full operating capacity. This massive computing system in Memphis in the US state of Tennessee was developed to expand the borders of the AI, and now consists of 200,000 GPUs, all of which are operated with Tesla Megapack batteries.
Nvidia chips for further chip center
Elon Musk recently announced in a CNBC interview that he was pursuing even larger plans. This is how his AI startup Xai – a competitor of Chatgpt developer Openai – is planning to build another chip center. A million GPUs are planned for this new system outside of Memphis.
However, Musk did not provide any information on how many chips the company has already ordered and until when they could be installed. However, Musk said in this context that he assumes that Xai and Tesla will continue to buy chips from the US hold-head managers Nvidia and AMD as well as possibly other providers.
The Nvidia technologies, originally developed for graphics cards, also prove themselves in particular for AI applications, which is why the company is one of the main profiteers of the current AI hype. Thanks to its technological advantage, the chip designer dominates around 80 percent of the world market for AI high-performance processors and is therefore the undisputed market leader.
USA and China in the AI race race
According to Musk, chips are currently the main factor that limits AI development, but he believes that this will change soon. He predicted that there will be a “fundamental lack of power generation” for AI companies in mid-2026, which will slow down.
China invested more in electricity generation than the United States, the United States still has an “advantage of groundbreaking innovations”, the Trump friend also dealt with the technological race with China. “I think it has something to do with the culture that says that you have to question authorities in order to create groundbreaking innovations,” argued Musk. However, in the Middle Kingdom, “authorities generally do not like to question”.
Editor finance.net
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