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Elon Musk’s xAI Partners with Oracle to Build Supercomputer for Next-Gen AI Model “Grok”

Billionaire mogul Elon Musk’s company xAI is planning to build a supercomputer in collaboration with Oracle to support the next version of its “Grok” artificial intelligence (AI) large language model.

According to a report from The Information, citing a presentation shown to xAI stakeholders, the project is described as a “Gigafactory of Compute.”

This initiative aims to train and develop the next generation of the Grok AI system.

As previously reported by Cointelegraph in April, Musk initially sought to raise $4 billion at a valuation of $15 billion for xAI, indicating that the funds would be used to increase its GPU count from around 10,000 to 100,000.

Following high investor interest, Musk raised the goal to $6 billion at a valuation of $18 billion.

If The Information’s report is accurate, xAI plans to use the funds to transform the 100,000 GPU cluster into a unified supercomputer architecture, referred to as a “Gigafactory of Compute.”

This term draws a parallel to Tesla’s “Gigafactories.”

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These developments occur as Musk raises expectations about the company’s capabilities and progress toward creating an AI that surpasses human cognitive abilities.

Speaking at the VivaTech 2024 conference in Paris, Musk expressed confidence that xAI would catch up to industry leaders OpenAI and DeepMind Google by the end of 2024.

He further stated his belief that an AI system capable of outperforming humans in all tasks would be possible by the end of 2025.

Musk, the world’s richest person, suggested that such an AI system could potentially replace all human employment, prompting existential questions about human purpose.

As he remarked, “if the computer and robots can do everything better than you, does your life have meaning?”

However, Musk acknowledged that our future role might be to “give AI meaning.”

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