xAI Secures $1.08B NVIDIA Deal for Priority Access to AI Superchips, Expands Memphis Facility

Dec 4, 2024, 10:00 AM

Elon Musk's AI company, xAI, has secured a $1.08 billion deal with NVIDIA for the delivery of GB200 superchips, set to begin in January. These advanced processors combine four Blackwell GPUs and two Grace CPUs, offering immense computing power. The deal includes priority access to NVIDIA's AI servers, aligning with xAI's ambitious AI goals. Additionally, xAI plans to expand its 'Colossus' supercomputer facility in Memphis, Tennessee, increasing its capacity from 100,000 GPUs to at least one million GPUs. This expansion will also see the arrival of operations from Nvidia, Dell, and Supermicro Computer in Memphis, marking a significant tech investment in the city.