San Francisco, Tuesday, June 4, 2024 – Tesla CEO Elon Musk pledged to spend around $9 billion to acquire 300,000 units of NVIDIA’s B200 chips for xAI by next summer.
Musk also announced Monday that the xAI 100,000 H100 liquid-cooled training cluster will be operational in a few months. 1
This investment comes shortly after xAI secured an $18 billion valuation in a new funding round, raising $6 billion. Musk’s ambitious plan involves spending at least half of xAI’s net worth on NVIDIA GPUs, underscoring the startup’s commitment to expanding its AI-related product portfolio.
In a recent social media post, Musk emphasized the rapid pace of technological advancement and noted that it’s not worthwhile to invest 1 gigawatt of power into H100s. He hinted that the next significant development could involve 300,000 B200s with CX8 networking, expected to be ready by next summer.2
Musk’s announcement aligns with his response to an online poll, where he revealed that xAI’s next major step is to acquire approximately 300,000 B200 GPUs. According to NVIDIA CEO Jensen Huang, the B200 GPUs are priced between $30,000 and $40,000 each, suggesting xAI’s expenditure could total around $9 billion.
This move follows a previous post that highlighted Meta’s large stash of H100 GPUs. Musk pointed out that Tesla and xAI should be ranked higher in terms of GPU holdings, reflecting his competitive stance in the AI and technology sectors.
As xAI prepares to bring its 100,000 H100 liquid-cooled training cluster online, Musk’s vision for the future includes significant investments in NVIDIA’s latest technology. The new B200 chips are set to replace the H100s, with the upcoming GB200 Grace Blackwell Superchip expected to offer 30 times faster performance for AI tasks.
The survey, conducted among 1,768 adults planning to vote in the 2024 election, has a precision of +/- 2.5 percentage points with a 95% confidence level.
- wccftech.com: https://wccftech.com/elon-musk-pledges-to-spend-around-9-billion-to-acquire-300000-units-of-nvidia-b200-chips-for-xai-by-next-summer[↩]
- X.com: https://x.com/AravSrinivas/status/[↩]
