Why Elon Musk Is Betting Big On Supercomputers To Boost Tesla And xAI

Elon Musk has big plans for how artificial intelligence can help to propel his businesses forward. The tech titan founded xAI, a new AI venture, in 2023 to develop large language models and AI products, like its chatbot Grok, as an alternative to AI tools being created by OpenAI, Microsoft and Google. In June, it was announced that xAI would build a multi-billion dollar supercomputer, called Colossus, in Memphis, Tennessee to carry out the task of training Grok. Musk thinks supercomputers can also transform Tesla from a car company to an AI and robotics company. In August, Musk teased Tesla’s AI supercomputer cluster called “Cortex” on X. Cortex is being built at Tesla’s Austin, Texas headquarters. Back in January, Tesla also announced that it planned to spend $500 million on a custom-built Dojo supercomputer in Buffalo, New York. The job of these supercomputers is to process and train AI models using the huge amounts of video and data captured by Tesla vehicles and improve Tesla’s suite of driver assistance features, which the company calls Autopilot, as well as its more robust Full Self-Driving or FSD system. Despite their names, neither Autopilot nor FSD make Tesla vehicles autonomous and require active driver supervision. But reaching full autonomy is critical for Tesla, whose sky-high valuation is largely dependent on bringing robotaxis to market, according to some analysts. Finally, supercomputers can also be used to train Tesla’s humanoid robot, Optimus. Watch the video to learn more about why Musk has been building a slew of supercomputers.

Chapters
01:55 – Supercomputers and xAI
05:08 – Supercomputers and Tesla
11:03 – Challenges and future outlook

Produced by: Magdalena Petrova
Additional Camera: Andrew Evers
Edited by: Nora Rappaprt
Animation: Josh Kalven
Supervising Producer: Jeniece Pettitt
Editorial Support: Lora Kolodny
Additional Footage: Getty Images, Tesla

» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision

About CNBC: From ‘Wall Street’ to ‘Main Street’ to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.

Want to master your money this fall? Sign up for CNBC’s new online course. We’ll teach you practical strategies to hack your budget, reduce your debt, and grow your wealth. Start today to feel more confident and successful. Use code EARLYBIRD for an introductory discount of 30% off, now extended through September 30, 2024, for the back-to-school season: https://cnb.cx/3WiasGB

Connect with CNBC News Online
Get the latest news: https://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC on Threads: https://cnb.cx/threads
Follow CNBC News on X: https://cnb.cx/FollowCNBC
Follow CNBC on WhatsApp: https://cnb.cx/WhatsAppCNBC

#CNBC

Why Elon Musk Is Betting Big On Supercomputers To Boost Tesla And xAI

source