Elon Musk unveils plan to acquire $9 billion worth of AI chips from Nvidia by next summer

Elon Musk's AI-focused startup xAI aims "to understand the true nature of the universe," and, judging by the impressive $18 billion valuation, a lot of investors are taking this goal seriously. For now, its only product is the chatbot Grok, but this company has big plans for the future. According to Elon Musk, half of the figure mentioned above will be used to buy Nvidia hardware.

After highlighting the fact that the company's 100k H100 liquid-cooled training cluster will go live in a few months, the tech billionaire posted on his X/Twitter account the following: "Next big step would probably be ~300k B200s with CX8 networking next summer." Unfortunately, this isn't an official confirmation, and many things could change in the calendar year that lies ahead. He also didn't reveal anything about the upcoming apps that would take advantage of the impressive AI-processing power that is headed towards xAI.

Also, the final numbers could be slightly different. For such a large quantity, xAI would surely be able to get a good price for the B200 GPUs. However, Nvidia's CEO, Jensen Huang, said in March that the B200 GPUs would be priced in the $30,000 to $40,000 range. Taking this into account, it remains to be seen if Elon Musk will be able to get a better deal for his company.

Those interested in xAI's Grok chatbot should grab Daniel D. Lee's Elon Musk's xAI: Grok to the Future (Elon's Multiverse), a book available in Kindle, hardcover, and paperback formats for prices between $5 and $25.