New news came from billionaire Tesla CEO Musk.Powerballjackpotdrawing!
The news that Musk plans to launch the xAI supercomputer this weekend has attracted a lot of attention in the artificial intelligence industry. According to technology media, Musk's artificial intelligence start-up xAI is planning to build a supercomputer to power the next generation of artificial intelligence chat robot Grok. Musk said he hoped to get the supercomputer up and running by the fall of 2025, adding that xAI might work with Oracle to develop the supercomputer.
So, how much impact will Musk's latest move have on the AI industry?Powerballjackpotdrawing?
Super computer
In a demonstration to investors in May, Musk said xAI planned to build an amazing supercomputer, saying bluntly that it would be a "computing superfactory," Silicon Valley technology media The Information reported on Saturday local time.
Musk hopes to have the supercomputer up and running by the fall of 2025, and he will personally be responsible for timely delivery. Musk added that the huge computer might be developed in partnership with Oracle. It is expected that upon completion, there will be four times as many chipsets connected together as the largest GPU cluster today, such as the GPU cluster built by Meta Platforms to train its AI model.
Since the launch of ChatGPT, OpenAI's generative artificial intelligence tool in 2022, the technology has been a competitive area between tech giants Microsoft and start-ups such as Google, Meta and Anthropic and Stability AI. Musk, who founded xAI last year, is one of the few investors in the world who have the financial resources to compete with OpenAI, Google or Meta in artificial intelligence.
Currently, xAI is developing a chat robot called Grok that can access social media platform X in real time. Musk has said publicly that xAI will need as many as 100000 GPU to train and run its next version of Grok. To make chatbots smarter, Musk recently told investors that xAI plans to concatenate all these chips into a supercomputer, or "computing superfactory".
XAI may work with Oracle to develop the supercomputer, the report said. It emerged in the middle of this month that xAI was close to reaching a multi-year cloud computing deal with Oracle worth "tens of billions of dollars", pushing up Oracle's share price at one point. At present, xAI has rented about 1 from Oracle.PowerballjackpotdrawingWith .60, 000 H100 chip servers, it is also Oracle's largest customer for such chips.
XAI is valued at $24 billion
Musk's artificial intelligence start-up xAI plans to complete a round of financing in June, valuing the company at more than $24 billion, including its recent influx of cash, according to people familiar with the matter.
XAI was scheduled to complete about $6 billion in financing in early May, but deals that have been under way since last year have yet to be completed. Recently, the company has been seeking up to $6.5 billion and plans to get closer to that goal in the coming weeks, the person familiar with the matter said.
As previously reported, xAI, a competitor to OpenAI, has marketed to a large number of Silicon Valley investors through a promotional material touting Musk's performance at Tesla and SpaceX. Promotional materials also point out that xAI and its chat robot Grok will be able to take advantage of high-quality data from Musk social platform X. Obtaining data is very important for building large language models, which are driven by artificial intelligence chatbots, and xAI aims to compete with other well-funded enterprises such as OpenAI.
Musk talked about xAI's goal of "finding the truth as much as possible" in a remote interview at the European Science and Technology Innovation Fair (Viva) in Paris on May 23. He criticized other artificial intelligence models developed by Google and OpenAI for "pandering" to political correctness. Another goal of xAI, he added, is to "strive to be the most interesting artificial intelligence." Musk also said that xAI is a new company, so Grok still has a lot of work to do to have artificial intelligence to compete with Google Deepmind and OpenAI, and may be able to do so by the end of the year.
When asked why he created xAI, Musk expressed concern about the lack of maximum truth in current AI research, believing that "the safest thing for AI is to seek the truth to the maximum", and stressed that xAI will commit itself to this goal, strive to build an AI that is beneficial to mankind, and avoid training "super intelligent liars." he repeatedly stressed that "honesty is the best policy." Musk also said that xAI was working on this, promising to "always release a model that goes beyond the current open source model" to increase transparency and promote healthy competition.
Which companies will benefit?
Earlier this year, Mr Musk said about 20, 000 Nvidia H100 GPU would be needed to train the Grok 2 model, adding that 100000 Nvidia H100 chips would be needed for Grok 3 and above. Some analysts pointed out that the "Computing Super Factory" needs to snap up Nvidia's chips in large quantities. Whether it is OpenAI and its allies Microsoft, or Google, Amazon, Meta, xAI, its AI arms race is inseparable from Nvidia's chips.
The latest figures show that in the first quarter, Nvidia's revenue reached $26 billion, an increase of 262% over the same period last year, higher than the market expectation of $24.7 billion, and net profit of 148US dollars.Powerballjackpotdrawing81 billion US dollars, a year-on-year increase of 628%. Nvidia expects second-quarter revenue to reach $28 billion, above analysts' expectations of $27 billion, thanks to strong demand for data center chips. Although Nvidia's shares have soared more than 110 per cent year-to-date, with a market capitalization of more than $2.6 trillion, wall street analysts are betting that Nvidia's shares will continue to soar amid strong demand from artificial intelligence.
Great Wall Securities pointed out that Nvidia's positive expectations for the development of AI and its own performance will drive market confidence in the development of the computing industry. Domestic AI computing industry chain core enterprises will also speed up the product layout and construction pace, to optical modules, PCB, connectors and other core components manufacturers may take advantage of Nvidia's server product upgrading and innovation and AI construction layout, speed up their own technological development and performance improvement, long-term benefit from industry development.
Tianfeng Securities said that due to the suppression of market style and Nvidia's financial report expectations in the early stage, the computing power sector continued to adjust. However, this time Nvidia's financial report exceeded market expectations, and the combined market style is expected to return. AI computing power is expected to strengthen. Looking forward to the next 3-6 months, the second quarter results are expected to continue to perform well in the market. The industrial end, from optical modules to GPUs to TSMC, is expected to be verified one after another. After the confidence level is improved, it is expected to promote AI computing power stocks to switch to 2025 performance valuation.