Elon Musk’s xAI Unleashes the World's Most Powerful AI Cluster

Author

Damon James
September 03, 2024

September 3rd, 2024

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Read Time: 10 Minutes

Today’s Menu

  • Elon Musk’s xAI Unleashes the World's Most Powerful AI ClusterBitcoin Climbs Amid U.S. Rate Cut Hopes, But Japan's Tightening Looms

Markets

Price

1 Day Change

Bitcoin

$57,665

.8% ⬆️

Ethereum

$2,438

1.3% ⬇️

Solana

$129

.7% ⬇️

TODAY IN AI

Elon Musk’s xAI Unleashes the World's Most Powerful AI Cluster

Elon Musk’s xAI has just launched “Colossus,” the most powerful AI cluster in the world, powered by 100,000 liquid-cooled Nvidia H100 GPUs, all connected on a single network fabric.

Built in just 122 days, xAI plans to double its size soon, adding another 100,000 GPUs. This massive computational power is set to accelerate the development of future versions of Grok, xAI's AI model, potentially putting significant pressure on industry leaders like OpenAI and Google to keep pace.

It wouldn’t surprise me if Elon Musk positions xAI as the “free speech” AI platform (similar to what he has done with X in comparison to Instagram/TikTok).

I don’t have a bullish or bearish opinion on Grok at the moment since I haven’t tried it out yet.

BUT I think it’s important to keep in mind the importance of network effect. X has 245M daily users visiting its platform and Grok is built directly into it. This is SIGNIFICANTLY more than OpenAI or Claude.

Although OpenAI may be ahead in terms of its AI capabilities, network effect is extremely important in terms of adoption.

Today In Crypto

Bitcoin Climbs Amid U.S. Rate Cut Hopes, But Japan's Tightening Looms

Bitcoin rose above $59,000, gaining 1% in the last 24 hours, while the broader crypto market edged up by 0.9%, according to the CoinDesk20 Index. The rally comes as traders anticipate a potential U.S. rate cut, with economic data due this week expected to influence the Fed’s decision.

However, Bank of Japan Governor Kazuo Ueda’s suggestion of further interest-rate hikes presents a challenge for risk assets, including crypto, as Japan tightens its monetary policy. Meanwhile, Japanese firm Metaplanet adopted BTC as a reserve asset, bolstering its crypto holdings.

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