Investing.com – Dell Technologies Inc. (NYSE:), led by CEO Michael Dell, has announced a partnership with NVIDIA Corporation (NASDAQ:) to build an AI factory designed to enhance the capabilities of Grok, an AI model developed by Elon Musk's company xAI.
Grok, a generative AI chatbot, was created in response to the growing popularity of ChatGPT, a product of OpenAI, of which Musk is a co-founder. Grok, which is based on a large language model, has the ability to process a wide range of visual information, including documents, diagrams, charts, screenshots, and photographs, in addition to its strong text capabilities.
xAI's Grok-1.5V, the first-generation multimodal model, was introduced in April. The company has emphasized Grok's ability to understand the physical world, with the AI model reportedly outperforming its competitors in the RealWorldQA benchmark, a measure of real-world spatial understanding.
In response to a question about another partner, Musk said “SMC” — short for Super Micro Computer, a San Francisco-based server maker.
Super Micro Computer Inc. (NASDAQ:), well-known for its strong ties with chip companies such as Nvidia and its innovative liquid-cooling technology, has confirmed its partnership with xAI to Reuters.
Shares of both Dell and SMCI surged following the news, rising more than 3%.
Earlier in June, xAI announced plans to build a supercomputer, called the “Gigafactory of Compute,” which is expected to be operational by 2025. The venture is expected to be a collaborative effort with Oracle (NYSE:) and is aimed at enhancing the capabilities of the Grok AI chatbot.
The upcoming supercomputer is set to use 100,000 of Nvidia's H100 GPUs based on the Hopper architecture, potentially four times larger than the current largest GPU cluster. Musk's move is seen as an attempt to outdo rival GPU clusters in terms of size and capabilities.