Billionaire tech mogul Elon Musk has told investors he plans to build a supercomputer dubbed “gigafactory of compute” to support the development of his artificial intelligence (AI) start-up xAI, an industry news outlet reported on Saturday.
The Tesla Inc CEO wants the supercomputer — which would string together 100,000 Nvidia H100 graphics processing units (GPU) — to be operational by fall next year, and he “will hold himself personally responsible for delivering it on time,” The Information said.
Nvidia’s H100 family of powerful GPUs dominate the data center chip market for AI, but can be hard to obtain due to high demand.
Photo: Bloomberg
The planned supercomputer would be “at least four times the size of the biggest GPU clusters that exist today,” such as those used by Meta Platforms Inc to train its AI models, Musk was quoted as saying during a presentation to investors this month.
Since OpenAI’s generative AI tool ChatGPT exploded on the scene in 2022, the technology has been an area of fierce competition between tech giants Microsoft Corp and Google Inc, as well as Meta and start-ups like Anthropic and Stability AI Inc.
Musk is one of the world’s few investors with deep enough pockets to compete with OpenAI, Google or Meta on AI.
His company xAI is developing a chatbot named Grok, which can access social media platform X, also owned by Musk, in real time.
Earlier this year, Musk said training the Grok 2 model took about 20,000 Nvidia H100 GPUs, adding that the Grok 3 model and beyond would require 100,000 Nvidia H100 units.
In related news, Tesla shareholders are being urged by a major proxy advisory firm to reject a proposed US$56 billion pay package for Musk, in a blow to the electric-vehicle manufacturer’s board.
Glass Lewis & Co made its recommendation in a report released on Saturday, citing the “excessive size” of the pay deal and the dilutive effect upon exercise.
“Mr. Musk’s slate of extraordinarily time-consuming projects unrelated to the company was well-documented before the 2018 grant, and only expanded with his high-profile purchase of the company now known as X,” Glass Lewis said.
The recommendation to large institutional investors might sway their vote over Musk’s pay at the vehicle manufacturer’s annual meeting on June 13. If the proposal is rejected, the CEO might make good on threats to develop products outside of Tesla.
Next month’s vote would be the second time Musk’s pay package has been put before shareholders. The remuneration deal was originally crafted in 2018, but earlier this year a Delaware judge voided it, saying investors were not fully informed of key details.
If Tesla’s board can show the compensation deal still has broad support, it might help with a legal appeal of the ruling. On the other hand, a loss would be a major embarrassment and demonstrate that investors are losing faith in Musk’s leadership. The vote is only advisory, meaning Tesla can choose to ignore it.
Additional reporting by Bloomberg
‘SWASTICAR’: Tesla CEO Elon Musk’s close association with Donald Trump has prompted opponents to brand him a ‘Nazi’ and resulted in a dramatic drop in sales Demonstrators descended on Tesla Inc dealerships across the US, and in Europe and Canada on Saturday to protest company chief Elon Musk, who has amassed extraordinary power as a top adviser to US President Donald Trump. Waving signs with messages such as “Musk is stealing our money” and “Reclaim our country,” the protests largely took place peacefully following fiery episodes of vandalism on Tesla vehicles, dealerships and other facilities in recent weeks that US officials have denounced as terrorism. Hundreds rallied on Saturday outside the Tesla dealership in Manhattan. Some blasted Musk, the world’s richest man, while others demanded the shuttering of his
Taiwan’s official purchasing managers’ index (PMI) last month rose 0.2 percentage points to 54.2, in a second consecutive month of expansion, thanks to front-loading demand intended to avoid potential US tariff hikes, the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) said yesterday. While short-term demand appeared robust, uncertainties rose due to US President Donald Trump’s unpredictable trade policy, CIER president Lien Hsien-ming (連賢明) told a news conference in Taipei. Taiwan’s economy this year would be characterized by high-level fluctuations and the volatility would be wilder than most expect, Lien said Demand for electronics, particularly semiconductors, continues to benefit from US technology giants’ effort
ADVERSARIES: The new list includes 11 entities in China and one in Taiwan, which is a local branch of Chinese cloud computing firm Inspur Group The US added dozens of entities to a trade blacklist on Tuesday, the US Department of Commerce said, in part to disrupt Beijing’s artificial intelligence (AI) and advanced computing capabilities. The action affects 80 entities from countries including China, the United Arab Emirates and Iran, with the commerce department citing their “activities contrary to US national security and foreign policy.” Those added to the “entity list” are restricted from obtaining US items and technologies without government authorization. “We will not allow adversaries to exploit American technology to bolster their own militaries and threaten American lives,” US Secretary of Commerce Howard Lutnick said. The entities
Minister of Finance Chuang Tsui-yun (莊翠雲) yesterday told lawmakers that she “would not speculate,” but a “response plan” has been prepared in case Taiwan is targeted by US President Donald Trump’s reciprocal tariffs, which are to be announced on Wednesday next week. The Trump administration, including US Secretary of the Treasury Scott Bessent, has said that much of the proposed reciprocal tariffs would focus on the 15 countries that have the highest trade surpluses with the US. Bessent has referred to those countries as the “dirty 15,” but has not named them. Last year, Taiwan’s US$73.9 billion trade surplus with the US