🤝 Elon Partners with Dell & Super Micro to Build AI Supercomputer

Elon says he's 'playing to win' in the AI race...

🤝 Elon Musk is Partnering with Dell & Super Micro to Build an AI Supercomputer

🤖 It’s been a big month for Elon, first with the approval of his controversial multi-billion paycheck package, and now with a huge partnership announcement with Dell & Super Micro Computers to build his highly anticipated AI supercomputer “Dojo” to power Tesla, Space X, and Grok, Elon’s ChatGPT challenger.

📈 And with Dell ($DELL) up 8.8% and Super Micro ($SMCI) up 6.9% this week, the market is clearly watching very closely. So let’s unpack what this announcement means for Musk, Dell, Super Micro, and the Tech/AI ecosystem overall…

💡 On Blossom, Super Micro Computer ($SMCI) is the #29 most held tech stock in Canada and the #14 in the US. Dell ($DELL) ranks #85 in Canada and #48 in the US.

🤖 What is an AI Supercomputer?

In order to train AI models like ChatGPT, you need specialized machines with immense computing power to process massive datasets, known as Supercomputers.

These machines process information millions of times faster than standard desktop computers.

🤔 What we know so far about Musk’s Supercomputer

  • 🤠 Elon has selected Memphis to house what he’s calling the ‘world’s largest supercomputer’.

  • 🤖 The Supercomputer will be used to fuel AI advancement for all of Musk’s companies (Most notably Tesla, Space X and Grok)

  • 🚘 The computer will be half Tesla hardware, half from other companies (like Nvidia, Dell and Super Micro)

  •  💽 Dell will be assembling half of the server racks for the Supercomputer, with Super Micro assembling the other half, each playing a pivotal role to accommodate the computational power used in training advanced AI models

  • 💰 Experts estimate the Supercomputer will cost ~$9B to build, most of which will come from the $6B fundraising round raised by xAI a year ago

  • 🧐 According to some, Elon & Tesla’s AI efforts are “not super credible,” with recent issues expanding the Gigifactory in Texas to house the Supercomputer, layoffs, and repeated claims that 'self-driving’ would be achieved by the end of the year for the past 5 years.

  • 🗓️ Elon hopes to get the supercomputer running by fall 2025 and will hold himself personally responsible for delivering it on time.

A first look at the supercomputers that will power xAI.

📈 Elon is ‘playing to win’ in the AI Race

Despite dropping the lawsuit against Sam Altman and OpenAI last week (which we reported on in detail here), Elon says he is still playing to win in the AI race.

Elon has claimed Grok is smarter and funnier than its rival chatbots and is ‘anti-woke’ compared to ChatGPT being ‘politically correct.’

Despite this, according to many tests, Grok is ‘still not as good as OpenAI’s GPT-4 model’ - something Elon likely hopes to change with the new supercomputer.

📈 Tesla is down 1.55% this week but up 5.34% in the last month, though it is difficult to seperate the impact of the AI annoucements and the massive recent news of Elon’s controversial pay package being approved.

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