Digital Trends
Between Tesla and xAI , Elon Musk ’s artificial intelligence aspirations have be some $ 10 billion dollars in make for training and inference compute capabilities online this twelvemonth , according to a Thursday berth on ex ( formerly Twitter)by Tesla investor Sawyer Merritt .
“ Tesla already deployed and is training ahead of schedule on a 29,000 social unit Nvidia H100 clustering at Giga Texas – and will have 50,000 H100 capacity by the end of October , and ~85,000 H100 tantamount capacity by December , ” Merritt notice .
Digital Trends
By the end of this year , Elon Musk's companies ( Tesla & amp ; xAI ) will have brought online rough $ 10 billion worth of grooming compute mental ability in 2024 alone .
Tesla already deploy and is cultivate onwards of docket on a 29,000 unit Nvidia H100 cluster at Giga Texas – and will have…pic.twitter.com/UgvmsBLuQp
& mdash ; Sawyer Merritt ( @SawyerMerritt)October 29 , 2024
Tesla also revealed its Cortex AI clustering in August , which will be leveraged to train the company’sFull Self - Drivingsystem and use 50,000 Nvidia H100 GPUs along with another 20,000 Dojo AI potato chip developed by Tesla itself . The Colossus supercomputer , which Tesla reveal in September , apply just as many H100 GPUs as the Memphis and is slat to expand by another 50,000 H100 and 50,000 H200 GPUs in the come month .
xAI , on the other hand , start assembling its Memphis supercomputerin July at itsGigafactory of Compute , settle in an old Electrolux production facility in Memphis , Tennessee . Musk claims that the Memphis is “ the most sinewy AI training cluster in the existence , ” as it runs on 100,000 Nvidia ’s H100 GPUs , throughMusk has promised to double that capacityin curt order . It arrive online in September and has since been tasked with building the “ world ’s most powerful AI by every system of measurement by December of this year ” — likely , Grok 3 . xAI has not disclose how much the Memphis price to build , thoughTom ’s Hardwareestimates that the companionship has drop at least $ 2 billion on GPUs alone .
The $ 10 billion figure is actually half of what , in April , Musk claimed Tesla would pass this yr on AI compute capacity . “ Tesla will spend around $ 10 billion this year on combined training and illation AI , the latter being mainly in car,”he place at the time . “ Any company not spending at this level , and doing so expeditiously , can not compete . ”
By that measure , Musk ’s AI efforts are already falling behind deep - pocketed rival like Microsoft , OpenAI , and Google . In July , for exercise , analysts estimatedthat OpenAI would spend around $ 7 billion on AI compute , while lose around $ 5 billion on other operating costs . However , the companyannounced in early Octoberthat its latest round of investment financial support totaled $ 6.6 billion at a $ 157 billion post - money valuation . “ The new backing will allow us to duplicate down on our leading in frontier AI enquiry , increase compute content , and continue build tools that aid multitude lick intemperate problems , ” the troupe wrote inits announcement post .
Per a report from Reuterson Thursday , both Microsoft and Meta are spending freely to work up out their respective AI compute capabilities . Microsoft is reportedly spending as much upper-case letter each quarter as it used to expend annually prior to 2020 . The ship’s company also report that its chapiter disbursement increased by more than 5 % in the first quarter of 2024 , to $ 20 billion , and expects to expend even more in Q2 . Meta , on the other handwriting , has spent as much capital every after part of 2024 as it did each year until 2017 .
As for Google , it reportedly spent$13 billionon capital expenditures in Q3 2024 , a 63 % increase over the same period last yr . What ’s more , the company has drop some $ 38 billion into compute infrastructure since the start of the year , an 80 % startle from the first three quarters of 2023 . Suddenly , $ 10 billion between a pair of companies and a handful of projection seems almost quaint .
