Elon Musk is getting NVIDIA, Dell and Supermicro to build a powerful supercomputer

Elon Musk's startup xAI has made a massive order with various hardware companies to create a powerful supercomputer that will be used to power Grok.

The CEO of Dell Technologies, Michael Dell, took to his personal X account to announce that Dell has partnered with xAI to construct a "Dell AI factory". Dell isn't the only company onboard with the supercomputer project, as NVIDIA will provide the horsepower with its powerful AI GPUs, and Supermicro will handle one-half of the total number of racks. Elon Musk clarified on his personal X account, "Dell is assembling half of the racks that are going into the supercomputer that xAI is building."

As for the horsepower, Musk stated earlier this month that xAI was on the verge of bringing 100,000 liquid-cooled NVIDIA H100 GPUs online, but Musk isn't totally thrilled with their efficiency, especially with NVIDIA's next-generation Blackwell GPUs on the horizon. Musk stated earlier this month, "Given the pace of technology improvement, it's not worth sinking one gigawatt of power into H100s. Next big step would probably be ~300k B200s with CX8 networking next summer."

Notably, if Musk wants to purchase 300,000 NVIDIA B200s, it will cost them between $30,000 and $40,000 per unit. Making the total conservative price $9 billion. However, that may not be a problem for xAI as the startup raised $6 billion in Series B funding just last month, which should cover a portion of the B200 purchases.

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