Elon Musk Secures Priority Delivery of NVIDIA GB200 AI GPUs in $1.08B Deal

Elon Musk’s xAI secures early access to NVIDIA’s GB200 AI GPUs in a $1.08 billion deal. With delivery set for January 2025, this acquisition boosts xAI’s Colossus supercomputer and cements its place at the forefront of AI innovation.

Elon Musk has made a big step forward for xAI’s technological progress by giving them early access to NVIDIA’s much-anticipated GB200 AI GPUs. The deal, worth $1.08 billion, guarantees delivery in January 2025 and puts xAI at the top of the AI race.

Insiders in the industry say that Elon Musk personally negotiated with Jensen Huang, the CEO of NVIDIA, giving a higher price to get access to the cutting-edge GB200 servers more quickly. Foxconn, NVIDIA’s key partner, is making these GPUs, which are expected to push the limits of AI computing.

This funding aligns with xAI’s desire to rapidly expand its Colossus supercomputer. In October 2024, xAI upgraded its capability to process NVIDIA Hopper AI GPUs from 100000 to 200000. Musk suggested that an even more significant leap would occur in June when GB200 GPUs with XC8 networking of 300,000 GPUs would presumably be in use by next summer. This project will be more costly than $10 billion.

The next move is to implement the $1.08 billion GB200 order as the next phase in xAI’s mission to be at the forefront of artificial intelligence advancement. As the field of AI increases its complexity, they will leverage NVIDIA’s state-of-the-art technology to enhance the processing capabilities of Colossus.

Elon Musk’s explicit strategy indicates his intent to make xAI one of the premier companies in the AI space, which underscores the strategic importance of NVIDIA and its game-changing AI GPUs for the future.