Musk's xAI has ordered $1.08 billion of NVIDIA's GB200 AI servers with priority delivery, sources say

According to DigiTimes.MuskAI startups under the umbrella of xA have givenNvidiaOrdered GB200 AI worth $1.08 billion. server (computer), and was given the right of first refusal to deliver.NVIDIA is expected to start delivering these servers in January 2025, manufactured by Foxconn.

Musk's xAI has ordered $1.08 billion of NVIDIA's GB200 AI servers with priority delivery, sources say

The report said,Musk directly contacted NVIDIA CEO Jen-Hsun HuangThe company discussed xAI's order of GB200 servers. Prioritizing NVIDIA's AI servers will help xAI better achieve its goals.

Jen-Hsun Huang and Musk have always had a good relationship. Jen-Hsun Huang has publicly appreciated Tesla on several occasions, stating that "Tesla is way ahead of the game when it comes to self-driving cars. But one day, every car must have self-driving capability, which is safer, more convenient, and more fun."

Last month, news broke that Musk was discussing a potential investment in xAI with NVIDIA. At the time, Jen-Hsun Huang declined to comment on the rumors, but recognized the hard work of the xAI team.

In late November 2024, xAI's valuation nearly doubled in six months to about $50 billion (currently about Rs. 363,735 million) after closing a $5 billion funding round.

Recently, Musk hinted at an upcoming standalone xAI app featuring his large-scale language model Grok, which is currently available on the X platform, and a standalone app would expand its user reach.

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