Michael Dell, $DELL, has said: We’re building a Dell AI factory with Nvidia, $NVDA, to power Grok for XAI

Michael Dell, CEO and chairman of Dell Technologies, announced on X that the company is developing the Dell AI Factory. This new venture will use NVIDIA GPUs to power Grok, the AI model created by Elon Musk’s company, xAI. Elon Musk has made significant investments in computational resources for xAI.

In 2023, xAI introduced Grok-1.5V, a first-generation multimodal model with strong text capabilities and the ability to process various visual information, including documents, diagrams, charts, screenshots, and photographs.

Musk acquired tens of thousands of GPUs in 2023. Training the Grok 2 model required about 20,000 Nvidia H100 GPUs, and Musk mentioned that the Grok 3 model and future iterations would need around 100,000 Nvidia H100 chips. According to prior reports, Musk aims to have a new supercomputer operational by fall 2025.

This project might involve collaboration with Oracle to build an extensive system. Once completed, the interconnected array of NVIDIA H100 GPUs would be at least four times larger than the largest existing GPU clusters, as Musk indicated during a presentation to investors in May.