World’s Largest Cluster of NVIDIA H100 : Elon Musk’s xAI Plans to Build ‘Gigafactory of Compute’ by Fall 2025

Elon Musk's xAI plans to build 'Gigafactory of Compute' by fall 2025 — using 100,000 Nvidia's H100 GPUs


Elon Musk recently revealed his plans to create a supercomputer that would surpass all existing GPU clusters in size and capability. Supporting Musk’s AI startup xAI, this initiative is poised to revolutionize the field of artificial intelligence. Reports from The Information and Reuters indicate that Oracle will collaborate in building the supercomputer, which is expected to be operational by the fall of 2025.

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An Unmatched AI Powerhouse

During a presentation to investors, Musk outlined his vision for this supercomputer. He emphasized the unparalleled scale of this project, intending to integrate over 100,000 NVIDIA H100 chips. This massive computing infrastructure will drive xAI’s research and development efforts. It will especially focus on training complex AI models like Grok 3 and beyond.

Earlier this year, Musk unveiled Grok 2, noting that he had trained it on a cluster of 20,000 NVIDIA H100 GPUs. The new supercomputer, therefore, represents a significant leap forward, quadrupling the size of the GPU cluster used for Grok 2.

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Funding: Key Investors and Funding Purpose

xAI, has successfully raised $6 billion in a Series B funding round. The impressive fundraising effort includes backing from notable investors like Andreessen Horowitz and Sequoia Capital. The company announced this on Sunday.

The latest funding round saw participation from prominent venture capital firms Andreessen Horowitz and Sequoia Capital.

These investors have a track record of supporting innovative technology companies, signaling strong confidence in xAI’s potential.

xAI plans to utilize the $6 billion infusion to launch initial products, develop advanced infrastructure, and speed up R&D for future technologies. The company hasn’t disclosed its valuation post the latest funding round, but media reports estimate it between $18 billion and $24 billion.

However, Reuters could not immediately verify these figures with xAI.

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Collaboration with Oracle

To bring this vision to life, xAI will work closely with Oracle. This partnership is crucial, as setting up such a colossal supercomputer requires not only financial resources but also technical expertise and infrastructure. Oracle’s experience in cloud computing and data management will be instrumental in ensuring the supercomputer’s success.

The Power of NVIDIA H100 GPUs

The NVIDIA H100 GPUs are renowned for their exceptional performance in handling AI workloads. These GPUs dominate the data center chip market due to their efficiency and power. However, their high demand poses a significant challenge, with startups, established tech companies, and even governments competing for these valuable resources. Musk’s ability to secure such a large number of H100 GPUs will be a remarkable feat in itself.

A Quantum Leap in AI Research

Once operational, the interconnected clusters of NVIDIA H100 GPUs will represent a quantum leap in computational power. This will enable xAI to train more complex and sophisticated AI models, pushing the boundaries of current AI research and development. The supercomputer will facilitate the creation of advanced AI systems capable of performing tasks beyond the reach of existing technology.

Musk’s AI Ambitions

Elon Musk’s journey in the AI sector has been marked by his commitment to advancing AI research ethically and equitably. He co-founded OpenAI in 2015 but later distanced himself from the organization, expressing concerns about its profit-driven direction under new leadership. Musk’s latest venture, xAI, reflects his dedication to pioneering AI innovations while adhering to his principles.

xAI’s flagship project, Grok, is a cutting-edge chatbot designed to access real-time data from social media platform X, formerly known as Twitter and owned by Musk. This integration allows Grok to provide up-to-date responses, enhancing its functionality and user experience.


Elon Musk’s announcement of the gigafactory of compute marks a significant milestone in the field of artificial intelligence. Musk aims to propel xAI to the forefront of AI research and development by creating the largest and most powerful GPU cluster ever assembled. This supercomputer will enable xAI to train complex AI models, pushing the boundaries of current possibilities and setting new industry standards.

As xAI progresses towards the completion of this monumental project, the world will be watching closely. Musk’s vision for the future of AI, along with his commitment to ethical development, promises a new era of technological innovation. This approach aims to drive significant discoveries in the field.

In a post on X (formerly Twitter), Elon Musk hinted at more developments on the horizon, stating, “There will be more to announce in the coming weeks.”

This suggests that xAI is gearing up for significant milestones and product launches in the near future.

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