The site has state-of-the-art chips and will be used to power xAI’s Grok intelligence
The CEO of Dell, Michael Dell, announced this Wednesday (June 19, 2024) that the technology company is building an AI (Artificial Intelligence) “factory”. The structure is built using chips from Nvidia –main hardware manufacturer for artificial intelligence companies today– to power Grok, the X (former Twitter) AI created by the company xAI, by Elon Musk.
An AI factory is made up of storage devices, networks, data protection devices and servers. The goal of this framework is to create a controlled environment allowing data to be quickly accessed by AI. This reduces costs and keeps data secure.
In May, Musk announced that he plans to build a “supercomputer” to process new versions of Grok AI. The machine is scheduled to start operating in 2025 and would use 5 times more GPUs (Graphics Processing Unit) than the current version of the AI.
Musk sued
On June 13, a group of investors from Tesla, a maker of electric and autonomous cars co-founded by Elon Musk, sued the businessman for founding, in 2023, the company xAI. Investors consider the new company a competitor.
In a post from January this year, Musk had admitted that, although Tesla had begun to focus its efforts on developing artificial intelligence, it had become “uncomfortable” grow the company to become a “leader in AI”.
“Musk admitted that he was inspired to establish this venture [a xAI] hot on the heels of the launches of Microsoft-backed OpenAI’s ChatGPT-4 and Google’s Bard chatbot.”say the investors in the process, who also mention that, from 2021 to 2022, the businessman sold more than US$39 billion in Tesla shares, becoming only 13% of the company’s control (in 2018, he had around 21 %).
Diversion of resources
O process also questions an alleged diversion of resources from Tesla to xAI, based, among other things, on reports from former employees of the automaker and Nvidia.
On June 4, the CNBC showed that Musk told Nvidia to send xAI chips that were reserved for Tesla. According to a former logistics analyst at the car company heard by the broadcaster, because of the scarcity of chips on the market – AI companies are competing with each other for them –, the “redirection” he was “extreme”.
The report mentions that the businessman’s guidance caused the automaker to stop receiving more than US$500 million in graphics processing units, which could delay the configuration of Tesla’s supercomputers used to develop autonomous cars.
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