Elon Musk looks to buy 300,000 Nvidia B200 chips for xAI
Elon Musk is reportedly planning to spend USD 9 billion to acquire some 300,000 units of Nvidia's B200 GPU for his xAI venture by next summer.
Shortly after xAI achieved a USD 18 billion valuation in a fresh investment round, the company plans to spend at least 50% of its net worth on Nvidia GPUs, according to Wccftech, citing Elon Musk's statements.
xAI recently raised USD 6 billion in a new funding round – which brings the value of Elon Musk's AI-focused company to USD 18 billion. Currently, the company's only product is the chatbot Grok, but the plan is to significantly expand its AI-related product portfolio by increasing its investments in GPU clusters.
Back in April, the X-account "The Technology Brother" posted that Mark Zuckerberg's Meta has amassed one of the world's largest stocks of H100 GPUs, amounting to around 350,000 units. A ranking that Musk did not agree with. According to him "Tesla would be second highest and X/xAI would be third if measured correctly."
Elon has also stated on X that xAI's next big move would likely be ~300k B200 with CX8 networking next summer.
Jensen Huang, the CEO of Nvidia, stated back in March that the company's B200 GPUs will probably cost between USD 30,000 and USD 40,000. This indicates that xAI is set to spend USD 9 billion to acquire around 300,000 units of the B200 GPU – and that a pricing point at the low end of Huang's range.
