Musk announced on social media platform X on Wednesday that Dell (DELL. US) and Supermicro Computer (SMCI. US) will become suppliers to his artificial intelligence startup xAI, providing server racks for the supercomputers it is currently manufacturing.
To be precise, Dell is assembling half of the racks for the supercomputers being built by xAI, “he wrote in response to a post
A netizen asked, “Who will make the other half of the rack? IBM? HP? Cray? Or SGI Musk replied, ‘SMC’.
This SMC refers to AMD, a company known for its close ties with chip companies such as Nvidia and its liquid cooling technology. The company has also confirmed its partnership with xAI to the media.
Dell Technologies CEO Michael Dell posted on X, “We are collaborating with Nvidia to build a Dell AI factory to support Musk’s xAI company’s large model Grok
XAI was founded in 2023 and is an artificial intelligence company created by Elon Musk as a benchmark for OpenAI. Musk previously told investors that his xAI plans to build a supercomputer to power its next-generation artificial intelligence chatbot, Grok. He hopes to put this supercomputer into operation before the autumn of 2025.
However, training AI models like Grok requires tens of thousands of chips with huge power consumption, and the supply of such chips is currently tight. Earlier this year, Musk stated that training the Grok 2 model would require approximately 20000 NVIDIA H100 Graphics Processing Units (GPUs), while the Grok 3 model and subsequent versions would require 100000 NVIDIA H100 chips.
Last month, xAI successfully raised $6 billion in funding, with investors including Sequoia Capital, Fidelity Asset Management, Saudi Arabia’s Kingdom Holdings, and others. The company stated that this funding will help bring xAI’s first products to market, build advanced infrastructure, and accelerate the development of future technologies.
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