Musk's AI startup xAI has ordered $1.08 billion worth of GB200 AI servers from NVIDIA and has been given priority delivery, DigiTimes reports. NVIDIA is expected to start delivering the servers in January 2025, and they will be manufactured by Foxconn.
Musk contacted NVIDIA CEO Jen-Hsun Huang directly to discuss the order for xAI's GB200 servers, the report said. Prioritizing NVIDIA's AI servers will help xAI better achieve its goals.
Jen-Hsun Huang and Musk have always had a good relationship. Jen-Hsun Huang has publicly praised Tesla on several occasions, saying, “Tesla is way ahead in self-driving cars. But one day, every car must have self-driving capability, which is safer, more convenient, and more fun.”
Last month, news broke that Musk was discussing a potential investment in xAI with NVIDIA. At the time, Jen-Hsun Huang declined to comment on the rumors, but recognized the hard work of the xAI team.
In late November 2024, xAI's valuation nearly doubled in six months to about $50 billion after closing a $5 billion funding round.
More recently, Musk hinted at the imminent launch of a standalone xAI app, powered by its large-scale language model Grok, which is currently available on the X platform, and a standalone app would expand its user reach.
