Musk, big news| AI _ Sina Finance

New news from billionaire and Tesla CEO Musk!

This weekend, the news that Musk plans to launch the xAI supercomputer attracted a lot of attention in the artificial intelligence industry. According to scientific media, Mask's AI startup xAI is planning to build a supercomputer to chat with the next generation of AI robot Grok provides power. Musk said that he hoped to make the supercomputer run before the fall of 2025, and added that xAI might cooperate with Oracle to develop the supercomputer.

So, how much impact will Musk's latest move have on the AI industry?

Supercomputer

On Saturday local time, The Information, a Silicon Valley technology media, reported that in May this year, Musk said in his presentation to investors that xAI planned to build a supercomputer with amazing specifications, which would be a "computing super factory".

Musk hopes that the supercomputer will be put into operation before the autumn of 2025, and he will personally be responsible for the timely delivery. Musk added that the huge computer might be developed in cooperation with Oracle. It is expected that after completion, the chipsets connected together will be four times the largest GPU cluster today, such as the GPU cluster built by Meta Platforms to train its AI model.

Since the advent of ChatGPT, OpenAI's generative AI tool, in 2022, this technology has always been a field of fierce competition between the technology giant Microsoft and start-ups such as Google, Meta, Anthropic and Stability AI. Musk is one of the few investors in the world who have enough money to compete with OpenAI, Google or Meta in the field of artificial intelligence. He founded xAI last year.

At present, xAI is developing a chat robot called Grok, which can access the social media platform X in real time. Musk has publicly said that xAI will need up to 100000 GPUs to train and run its next version of Grok. In order to make the chat robot more intelligent, Musk recently told investors that xAI plans to connect all these chips into a supercomputer, or "computing power super factory".

It is reported that xAI may cooperate with Oracle to develop this supercomputer. In the middle of this month, it was reported that xAI was close to reaching a cloud computing power supply agreement with Oracle that lasted for many years and was worth "10 billion dollars", which once pushed up Oracle's share price. At present, xAI has rented about 16000 H100 chip servers from Oracle, and it is also Oracle's largest customer of such chips.

XAI valued at $24 billion

According to Bloomberg, people familiar with the matter said that Musk's artificial intelligence startup xAI planned to complete a round of financing in June, including its recent influx of cash, the company's valuation may exceed $24 billion.

XAI was originally scheduled to complete the financing of about $6 billion in early May, but the transactions that have been in progress since last year have not yet been completed. The above informed person said that recently, the company has been seeking up to $6.5 billion in capital, and plans to be closer to this goal in the next few weeks.

According to previous reports, xAI is a competitor of OpenAI. The company has promoted to many Silicon Valley investors through a promotional material, which praises Musk's performance in Tesla and SpaceX. The promotional materials also point out that xAI and its chat robot, Grok, will be able to take advantage of the high-quality data of the Musk social platform X. Obtaining data is crucial to building a large language model, which is the driving technology of AI chat robots. xAI aims to compete with other funded enterprises such as OpenAI.

On May 23 local time, Musk talked about the goal of xAI "seeking the truth as far as possible" in a remote interview at the European Science and Technology Innovation Exhibition (Viva) held in Paris. He criticized Google and other AI models developed by OpenAI for "catering" to political correctness. He added that another goal of xAI is to "strive to become the most interesting AI." Musk also said that xAI is a new company, so Grok still has a lot of work to do to have AI that can compete with Google Deepmind and OpenAI, which may be achieved by the end of this year.

When asked about the reason for creating xAI, Musk expressed his concern about the lack of pursuit of the maximum truth in current AI research, believed that "the safest thing for AI is to seek the truth to the maximum extent", and emphasized that xAI will be committed to this goal, strive to build an AI beneficial to human beings, and avoid training "super intelligent liar". He repeatedly stressed that "honesty is the best policy" 。 Musk also said that xAI is committed to this and promises to "always release a model that goes beyond the current open source model" to improve transparency and promote healthy competition.

Which companies will benefit?

Earlier this year, Musk said that about 20000 Nvidia H100 GPUs were needed to train the Grok 2 model, and added that 100000 Nvidia H100 chips would be needed for the Grok 3 model and above. Some analysts pointed out that "Jianli Super Factory" needed to snap up Nvidia's chips in large quantities. Whether OpenAI and its ally Microsoft, or Google, Amazon, Meta, xAI, their AI arms race is inseparable from Nvidia's chips.

The latest data shows that in the first quarter, NVIDIA's revenue reached 26 billion US dollars, up 262% over the same period last year, higher than the market's expectation of 24.7 billion US dollars; The net profit was 14.881 billion US dollars, a year-on-year increase of 628%. Thanks to the strong demand for data center chips, Nvidia expects its revenue to reach $28 billion in the second quarter, higher than the $27 billion expected by analysts. Although the stock price of Nvidia has soared by more than 110% since the beginning of the year, with a market value of more than 2.6 trillion dollars, Wall Street analysts bet that Nvidia's stock price will continue to soar under the strong demand brought by artificial intelligence.

Great Wall Securities It is pointed out that Nvidia's positive expectations for AI development and its own performance will drive the market's confidence in the development of computing industry. The core enterprises of the domestic AI computing industry chain will also speed up the pace of product layout and construction. With the core component manufacturers such as optical modules, PCBs, connectors, or by leveraging Nvidia's server product upgrading innovation and AI construction layout, they will accelerate their own technological development and performance improvement, and benefit from the development of the industry for a long time.

Tianfeng Securities He said that, in the early stage, due to the suppression of market style and Nvidia's financial report expectation, the calculation force sector continued to adjust, but this Nvidia's financial report exceeded the market expectation, and the superimposed market style is expected to return, AI computing power is expected to grow stronger. Looking forward to the next three to six months, the performance of the second quarter is expected to continue to perform well in the market. The industrial end is expected to be verified from optical modules to GPUs to TSMC. After the confidence level is improved, it is expected to promote the switching of AI computing power stocks to 2025 performance valuation.

Editor in charge: Tactical Constant