Elon Musk’s AI Rush: Spending Trillions on NVIDIA Chips

Login to Continue Learning

Elon’s xAI plans to scale up its computing power significantly, aiming for an equivalent of 50 million H100 AI chips, which could be worth trillions of dollars.

Recent announcements show that the demand for AI chips is far from diminishing. After OpenAI and Meta, Musk’s xAI has announced plans to acquire NVIDIA’s high-end AI servers and accelerators. One notable announcement was xAI’s Colossus 2 cluster, which will come online in a few weeks with over 550,000 GB200 and GB300 units. This represents an estimated expenditure of around $2 trillion.

Elon aims to achieve up to 50 million H100 equivalent AI compute power within the next five years. Depending on NVIDIA’s pricing for exclusive customers like xAI, this could be worth $1.5-$2 trillion. By then, the total compute power would amount to approximately 200 exaFLOPS, which is 20 times more powerful than the world’s fastest supercomputer.

Interestingly, OpenAI’s CEO, Sam Altman, announced plans for over 100 million AI chips in upcoming years. Meanwhile, Meta’s CEO, Mark Zuckerberg, revealed that the company is building multiple GW-scale AI clusters, indicating ongoing high demand for AI technology among tech giants.

In a unique start to his ruling against President Donald Trump’s administration on September 30, U.S. District Court Judge William Young included a scanned handwritten note sent to his office. The note read: “Trump has pardons and tanks – what do you have?” At the top of Young’s opinion in AAUP v. Rubio, which ruled that Trump’s effort to deport foreign-born student protesters was unconstitutional.

October 8, 2025

📚 Reading Comprehension Quiz

10 Points

According to the passage, what is Elon Musk's xAI planning to achieve in terms of AI compute power within the next five years?

A. 50 million H100 equivalent AI chips B. 200 exaFLOPS C. Over 100 million AI chips D. Multiple GW-scale AI clusters

Please login or register to take the quiz and earn points!