Elon Musk, a key player in the AI sector, has founded two AI development companies, namely OpenAI and the upcoming xAI. While Sam Altman has taken over OpenAI, xAI has emerged as its biggest competitor, utilizing tech giants Oracle and Nvidia’s AI-equipped H100 GPUs to train its AI chatbots. However, a deal between xAI and Oracle was cut short due to disagreements over timelines and power supply concerns. Elon Musk expressed that although Oracle is a good company, xAI is looking for faster alternatives.
After the failed deal with Oracle, xAI plans to build its own processing system, the 100k H100 system, in Memphis, Tennessee, USA. This system, powered by Nvidia chips, aims to be the fastest among its competitors. xAI has hired 24,000 Oracle H100s to train its AI chatbot Grok 2.0, which is currently in the final stages of development. Additionally, xAI is working on Grok 3.0, a highly engaging AI chatbot expected to be released by the end of the year.
Despite the failed deal with Oracle, xAI’s agreement with the company on AI model training remains intact, with xAI continuing to lease 16,000 Nvidia chips. On the other hand, Oracle has teamed up with Microsoft to source Nvidia-powered servers for OpenAI workloads.
Elon Musk’s commitment to advancing AI technology is evident through his company’s innovations and strategic partnerships. With xAI’s focus on developing cutting-edge AI chatbots and processing systems, the competition in the AI sector is heating up. The future of AI development looks promising with industry leaders like Musk driving innovation and pushing boundaries.
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