Elon Musk's xAI Flips The Switch On 100K Nvidia H100 GPUs Worth Up To $4B In Memphis Supercluster: 'Most Powerful AI Training Cluster In The World'

xAI founder Elon Musk lauded the teams at his AI startup and X as well as Nvidia Corp. NVDA for successfully initiating the training of the Memphis Supercluster with 100,000 Nvidia H100 GPUs.

What Happened: On Monday, Musk took to Twitter to express his admiration for the teams involved in the launch of the Memphis Supercluster. The training started at approximately 4:20 a.m. local time, according to Musk.

"With 100k liquid-cooled H100s on a single RDMA fabric, it's the most powerful AI training cluster in the world!" Musk said.

Nice work by @xAI team, @X team, @Nvidia & supporting companies getting Memphis Supercluster training started at ~4:20am local time.

With 100k liquid-cooled H100s on a single RDMA fabric, it's the most powerful AI training cluster in the world!

— Elon Musk (@elonmusk) July 22, 2024

With each H100 GPU estimated to cost between $30,000 to $40,000, this is worth an investment of $3 billion to $4 billion.

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This is after xAI raised $6 billion in May this year at a valuation of $24 billion – essentially, Musk's AI startup has invested between 50% to 67% of its fundraising towards Nvidia H100 GPUs.

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Why It Matters: This development comes on the heels of xAI’s recent search for networking engineers and technicians, particularly in Memphis, a city known for its thriving tech industry and numerous fiber optic networks.

Earlier this month, Musk revealed that the upcoming version of his AI chatbot, Grok 3, would be trained on a massive 100,000 Nvidia H100 chips. These chips, also known as Hopper, are essential for data processing in large language models (LLMs) and are highly sought after in Silicon Valley.

Furthermore, xAI has reportedly seen an influx of former Tesla employees, particularly after a series of layoffs at the electric vehicle giant. This move has sparked controversy, with some accusing Musk of using Tesla as a talent pool for his other ventures.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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