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Elon Musk’s xAI activates “most powerful AI training cluster in the world” with 100k Nvidia H100 GPUs

Credit: xAI/X

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Elon Musk’s artificial intelligence startup, xAI, has activated its supercomputer cluster in Memphis, Tennessee, which is comprised of 100,000 Nvidia H100 GPUs. Tesla CEO Elon Musk confirmed the milestone in a post on social media platform X. 

xAI had a busy weekend, with the AI startup announcing a hiring ramp on X. Musk highlighted these efforts on Monday morning, stating that xAI was looking to increase its human talent advantage. Interestingly enough, Musk also encouraged those who are interested in AI to apply to Tesla and X. 

Musk then mentioned that a collaboration between teams from xAI, X, and Nvidia has enabled the Memphis Supercomputer cluster to start training at 4:20 a.m. local time. As per Musk, the supercomputer cluster features 100,000 Nvidia H100 GPUs, effectively making it the most powerful AI training cluster in the market today. 

“Nice work by xAI team, X team, Nvidia team, and supporting companies getting Memphis Supercluster training started at ~4:20 a.m. local time. With 100k liquid-cooled H100s on a single RDMA fabric, it’s the most powerful AI training cluster in the world! This is a significant advantage in training the world’s most powerful AI by every metric by December this year,” Musk wrote in a post on X. 

xAI’s supercomputer cluster is expected to be used to train the company’s large language model, Grok, which is currently rolled out as a feature for X Premium subscribers. Earlier this month, Musk noted in a post on X that xAI’s Grok 3 would be trained on 100,000 H100 GPUs so “it should be really something special.” 

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Previous reports from Memphis back in early June suggested that xAI would be building a supercomputer cluster informally dubbed the “Gigafactory of Compute” at the 785,000-square-foot former Electrolux Memphis facility. In a press release, the Greater Memphis Chamber stated that xAI’s supercomputer project represents the city’s largest capital investment by a new-to-market company in Memphis history. 

xAI’s investment is substantial. As per a Benzinga report, each Nvidia H100 GPU is estimated to cost between $30,000 to $40,000. Considering that xAI is using 100,000 Nvidia H100 units, Elon Musk’s AI startup appears to have spent about $3 billion to $4 billion for the project.

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Elon Musk

Teslas will self-deliver to customers, Elon Musk says: here’s when

Teslas will soon drive themselves to customers, Elon Musk says

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Credit: Tesla

Tesla CEO Elon Musk has an extremely busy month for himself and his company in June if all goes according to plan.

Not only is Tesla planning to launch its Robotaxi platform in Austin, Texas, next month, but Musk is also now indicating that Teslas will self-deliver to customers in June as well.

Musk has said for some time that Tesla vehicles would soon be capable of driving to customers without a driver within the car. Initially, it seemed like the company would do this in the areas close to its U.S. factories – the Greater Austin, Texas, area, and potentially in Northern California’s Bay Area of San Francisco, where the company’s Fremont Factory operates.

Upon confirmation that Tesla has been testing driverless Robotaxi rides in Austin for the past several days, Musk brought forth a new detail that fans of the company will love to hear: Teslas will soon drive themselves to customers, eliminating the need for trips to the showroom for delivery.

How soon? Musk says next month:

There is no doubt that the bigger news within Musk’s X post is that it is on track for the launch of the Robotaxi platform. Tesla has been touting its prowess in self-driving for several years. As other companies have executed, Tesla has taken a more unorthodox approach by utilizing only cameras and being much more reserved with its rollout of driverless software.

While Full Self-Driving is consistently ranked at the top of the current Advanced Driver Assistance Systems (ADAS), it is not fully autonomous. That is set to change, and not only will it yield the results of what will hopefully be a successful Robotaxi fleet, but also a vehicle delivery process that makes buying a vehicle more convenient than it already is from Tesla, with no hassle, no dealership jargon, and no negotiating.

The launch of the Robotaxi platform is set for Austin on June 12, according to Bloomberg, where roughly 10 Model Y SUVs will make their way around the city initially. Tesla will expand as safety is proven, which is the utmost priority.

Musk also said later on X that people should be able to fly to Austin and hail a Robotaxi by the end of June.

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Tesla lands on date for Robotaxi launch in Austin: report

Tesla has reportedly landed on a tentative date to launch the Robotaxi platform in Austin.

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Credit: Tesla

Tesla has reportedly landed on a set date for its launch of the Robotaxi platform in Austin, Texas.

Bloomberg is reporting that Tesla has discussed June 12 internally, and there is still the potential for it to change.

The date comes after Tesla tested the driverless ride-sharing platform on public roads in Austin, and has been for several weeks. The report said that Tesla started doing it this week, and CEO Elon Musk confirmed on X by saying:

“For the past several days, Tesla has been testing self-driving Model Y cars (no one in driver’s seat) on Austin public streets with no incidents.”

The report indicates a person was in the vehicle, but not in the driver’s seat. Instead, a Tesla engineer sat in the passenger seat of a Model Y, “which drove autonomously with no remote operation.”

Tesla set for ‘golden age of autonomous’ as Robotaxi nears, ‘dark chapter’ ends: Wedbush

The testing has successfully gone on a month ahead of the company’s deadline of June 30.

Currently, Tesla’s plans for the initial rollout of the suite are extremely limited. There will only be ten vehicles at first, and the riders will be invited by the company. This is an effort that puts safety at the forefront of this trial period, and will expand as time goes on.

It could be sooner than expected, as Musk also said that anyone would likely be able to visit Austin and take a ride in the Robotaxi by the end of June.

The report and subsequent announcement come after many media outlets reported Tesla was not testing Robotaxi in any capacity. Some had even considered the project a total failure even before the June launch date, a typical tone most media take with the company.

Tesla Robotaxi deemed a total failure by media — even though it hasn’t been released

Tesla has not been great at meeting its own timelines, but it has been adamant that it would reach this June deadline for several months.

Now that it appears Tesla is at an all-systems-go mentality for the Robotaxi launch, it will be interesting to see how quickly it can expand from its initial testing.

Shares are up just over 1.3 percent as of 10:30 a.m. on the East Coast. They are up 24 percent over the past 30 days, and down just 4.5 percent for the year so far.

The Robotaxi fleet will help to bolster Tesla’s position as a leader in autonomy, something it has already essentially achieved through its successful operation of the Supervised Full Self-Driving suite.

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Tesla investors demand 40-hour workweek from Elon Musk

Pension fund leaders push the Tesla board to require 40 hrs/wk from Elon Musk. Should Tesla enforce this? Or simply trust Musk?

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Wcamp9, CC BY 4.0 , via Wikimedia Commons

Pension fund leaders with Tesla investments are urging the company’s board to mandate Elon Musk dedicate at least 40 hours per week to the electric vehicle maker, citing a looming crisis.

The group holds a combined 7.9 million TSLA shares and expressed alarm over Tesla’s challenges in a Wednesday letter to board chair Robyn Denholm.

“Tesla’s stock price volatility, declining sales, as well as disconcerting reports regarding the company’s human rights practices, and a plummeting global reputation are cause for serious concern,” the investors wrote.

https://www.teslarati.com/tesla-elon-musk-explains-25-percent-voting-share-tsla/

They attributed many issues to Musk’s external activities, including his role in the U.S. Department of Government Efficiency (DOGE). The pension fund leaders criticized the board for failing to ensure Musk’s “full-time attention” on Tesla. The group includes the SOC Investment Group, the American Federation of Teachers, New York City Comptroller Brad Lander, and Oregon State Treasurer Elizabeth Steiner.

The investors’ letter comes as the Tesla board plans for Elon Musk’s next compensation plan, following the Delaware Court of Chancery’s 2023 ruling to rescind his $56 billion 2018 package. Besides a 40-hour workweek requirement, they also called for a clear succession plan and limits on directors’ external board commitments to strengthen governance. The letter highlighted concerns about board independence. Tesla recently added former Chipotle CFO Jack Hartung, who previously worked with Musk’s brother, Kimbal Musk, as a Tesla board member.

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The group’s letter reveals where the position of some investors as Elon Musk forges ahead with Tesla’s future plans. Musk’s broader ambitions for Tesla were evident during the Q4 and FY 2023 earnings call, where he envisioned the company as an AI and robotics powerhouse with “truly immense capability and power.” He emphasized his desire for 25% voting control to maintain influence without complete control.

“You know, we’ve had a lot of challenges with Institutional Shareholder Services, ISS — I call them ISIS — and Glass Lewis, you know, which there’s a lot of activists that basically infiltrate those organizations and have strange ideas about what should be done,” Musk said.

As Musk plans to focus more on Tesla, alongside xAI and SpaceX, the investors’ demands underscore tensions between his expansive vision and shareholder expectations. With Tesla navigating stock volatility and reputational challenges, the board faces pressure to align Musk’s leadership with the company’s long-term stability.

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