Nvidia Pressured to Meet Musk’s Huge AI Chips’ Demand
The Elon Musk Nvidia chips demand is testing the chip giant’s production capacity as it faces pressure as the tech billionaire seeks high-performance chips for training and deploying AI models, according to The Wall Street Journal.
Musk buying Nvidia led a spokesperson to tell Business Insider that the chip giant has “worked hard to meet the needs of all customers” and “greatly expanded the available supply” of its chips.
Elon Musk Buying Nvidia Chips
Musk’s expansion of AI initiatives is testing Nvidia’s hot chip supply. In 2023, the Tesla CEO launched his AI startup, xAI, and quickly redirected $500 million worth of Nvidia chips from Tesla to X and xAI to power AI models.
Tesla did not immediately use these chips, so Musk repurposed them for his AI ventures, requiring collossal computational power.
In September of last year, “Closus” an AI training system for Xai was launched by Elon Musk. The system was powered by 100,000 Nvidia H100 GPUs. Musk announced then that he is preparing to double Clousus’ size by adding another 100,000 GPUs, putting further pressure on Nvidia’s already strained supply chain.
Meta’s Massive GPU Acquisition
When Elon musk bought Nvidia chips, the excentric CEO put pressure on Nvidia, however he’s not alone. Meta CEO Mark Zuckerberg also revealed plans to acquire over 340,000 Nvidia H100 GPUs by the end-year.
Zckerberg told The Verge that Meta has scaled its AI capacity to compete with other tech giants.
“We have built up the capacity to do this on a scale that may be larger than any other individual company. I think a lot of people may not appreciate that,” Zuckerberg said.
Following such announcements, the high demand of Elon musk on Nvidia chips is more understandable, and Nvidia’s chips have become an essential factor in the AI models development.
In response to Elon Musk Nvidia chips growing pressure, the chip giant revealed efforts to increase GPUs’ availability and meet customers’ needs, but Musk redirection of Nvidia chips continues to challenge the company’s ability to keep up.
Elon musk buys Nvidia Chips Result
Elon musk and Nvidia’s chips collaboration has driven the company’s financial performance to new heights. On November 20, Nvidia recorded $35.08 billion in revenue, a staggering 94% increase, reflecting its dominant position in the AI market.
The continuation of this high demand will keep Nvidia a key player in the development of new AI models. But it still has to be careful from the increasing pressure of Elon Musk and Zuckerberg and the challenges of many other tech companies seeking Chips supply that power the future of AI.
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