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Dell and Nvidia collaborate on AI factory for Elon Musk’s xAI Grok Model

Dell and Nvidia collaborate on AI factory for Elon Musk's xAI Grok Model Dell logos are seen at its headquarters in Cyberjaya, outside Kuala Lumpur in this September 4, 2013. (Reuters)
By Newsroom
Jun 19, 2024 7:00 PM

Dell Technologies Inc. and Nvidia Corp. are teaming up to build an AI factory designed to enhance the capabilities of Elon Musk’s xAI’s Grok model, Dell CEO announced on Wednesday. This strategic partnership is aimed at leveraging Nvidia’s advanced GPUs to bolster the computational power of xAI’s Grok 2 model, a significant step forward for Elon Musk’s artificial intelligence startup.

Dell, an American technology powerhouse, is set to assemble half of the racks for the supercomputer that xAI is developing. This marks a substantial contribution to the infrastructure supporting the Grok model, aimed at revolutionizing AI applications.

Michael Dell, Chairman and CEO of Dell Technologies, confirmed the collaboration in a post on social media platform X, stating, “We’re building a Dell AI factory with Nvidia to power Grok for xAI Elon Musk.” This announcement has quickly garnered attention across the tech industry, aligning with the intensifying global race for AI supremacy.

Nvidia, known for its leadership in GPU and AI chip production, has seen a remarkable surge in market valuation, recently surpassing Microsoft with a $3.335 trillion market cap to be the most valuable company as per Market Cap.

Elon Musk’s xAI, founded in March 2023 and based in the San Francisco Bay Area, aims to “understand the true nature of the universe” through advanced AI models and tools.

Despite its relatively small team of around 50 employees, xAI has made significant strides, securing up to $6 billion in recent Series B funding to support its ambitious projects, including building the world’s largest supercomputer in Memphis.

The Dell-Nvidia partnership is aimed to enhance xAI’s Grok model, which already operates on the X platform, utilizing vast amounts of data from social media to improve user interactions.

Nvidia’s stock closed at $135.58 on June 18, up 3.51% for the day and an impressive 173% year-to-date. Dell’s stock also rose, closing at $149.15, up 5.01%, reflecting investor confidence in the potential of its AI Factory initiative.

Dell’s AI Factory, introduced last month, aims to democratize AI by making it more accessible and easier to deploy across various industries. By integrating Nvidia’s high-performance GPUs, the platform will enable xAI to train and run its advanced AI models efficiently.

The collaboration between Dell, Nvidia, and xAI is poised to accelerate the adoption of AI across the enterprise, transforming business operations and driving innovation. This partnership underscores the companies’ commitment to advancing AI technology and expanding its applications.

Further details on the project and additional comments from Elon Musk are eagerly anticipated by the tech community. Meanwhile, X also announced plans to introduce a Venmo-like payments feature, reinforcing its aim to become an all-encompassing app.

Last Updated:  Jun 19, 2024 7:00 PM