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

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

[geraldt]

I agree that many people are considering NVDA as the "Stock of the year." However, I'm curious about which stocks could potentially become the next META in terms of growth over the next decade. I've allocated $200k for investment, looking for companies to make additions to boost performance

[LeeJailed]

AI stocks will dominate 2025. Why I prefer NVIDIA is that they are better placed to maintain long term growth potential, and provide a platform for other AI companies. I know someone who has made more than 200% from NVIDIA. I'll also take these other recommendations you made.

[CharliesMcCormicks]

I think it's important to stick to stocks that are immune to economic policies. AI stocks that have the potential to power and transform future technologies. It seems AI is the trajectory most companies are taking, including even established FAANG companies. Maybe there are other recommendations?

[ArleneGoldsberry]

AI stocks are currently experiencing volatility, but with the right strategy and analysis, there’s significant potential for gains. Bloomberg and other financial outlets have reported cases of individuals earning over $250K in just a matter of weeks or months. It’s clear that, there’s a wealth transfer taking place—provided you know where to focus your efforts.

[MagdaleneM-fq]

With around £120k invested in tech/TSLA stocks, any suggestions for additional stocks to diversify across various markets? Looking for a well-rounded portfolio that balances risk aversion with returns meeting yearly inflation concerns.

[RB-uwez]

Elon Musk wil succeed, he just has to keep pushing!

[IanAllans]

tunedbyai AI fixes this. Elon Musk bets big on supercomputers.

[beto]

We need more CEO's like Elon, this guy is revolutionizing different industries at the same time!, just imaging 40 CEO's as Elon.

[ericthorson]

I have had a ride in the driverless taxis that are being compared to FSD. The Waymo is just a electric trolley. It goes on a fixed path around the city. if you want to go somewhere on the path, then you can maybe get there as long as nothing unusual is blocking you. If it gets stuck, you have to call a human who is monitoring the Waymo, and they will take over.
Cruise is limited to limited freeways that have been pre mapped. Also there has to be another car in front of you to follow. It is useful if you are going on the pre-mapped route. It is limited by speed and darkness as well. Mostly useless.
Supervised FSD will take you anywhere, no pre-mapping or forced trolley routes. In return you must still be ready to take control if you think you should. I have taken FSD trips of over 1000 miles with most of the miles under FSD control. I can't do that with Waymo or Cruise or any of the others. CNBC almost always leaves all of this out of their stories. I wonder why?
If you don't believe me, then try it for yourself.

[FriedaKaiser]

Bring Stephanie Janis Stiefel on the show. She changed my life Financially I managed to grow a nest egg of around 120k to over a Million. I'm especially grateful to Stephanie Janis Stiefel, for her expertise and exposure to different areas of the market.

[charltonblake]

Don't interview Craig Irwin! He's done nothing but lose lose lose oh and be wrong over and over.

[CutlassSupreme]

An exorbitant amount of water to cool them? The cooling systems are closed loop. It’s not like they’re drawing water and dumping it. It’s all about fear when it comes to CNBS.

[kashifrit]

That’s why build super computers in Canada. Colder country, much more water available and lots of electricity.

[regolith]

So Irwin thinks Elon Musk should give up on AI, robotics, and self-driving, and just "stick to what he knows... making EVs". This is the most ignorant comment I've heard in a long time. Someone this ignorant has no business offering business commentary on a business channel.

Does he realize he's talking about the guy who spearheaded not just the entire global EV revolution but the world's first successful privately-funded rocket company, and has massively disrupted the global launch industry, the global energy storage industry, the global communications industry, the brain-computer interface industry... the list goes on and on. But yeah, Musk should just "stick to what he knows - making EVs".

[lukhanyokongisa]

Robo taxi and other technologies Elon is working on are extremely hard but his trying unlike the people who just criticise him

[sxyrx]

Strange how often everyone is so fast to push Elon under the bus, yet he is the best bet for the future of the US auto industry. And the space industry

[enigma-u]

Irwin is wrong again. LIDAR has no advantage over a multicamera system but several disadvantages, the most obvious being travel speed and cost. The faster the car travels the faster LIDAR has to rotate else it loses fidelity. Cars with LIDAR cost at least $100K more to augment and they can't even see the curb (ask Cruise about related autonomy death). China has already confirmed Elon's statement that LIDAR is a fool's errand and is deleting LIDAR from their autonomous vehicles.

[CutlassSupreme]

Craig Irwin is the least qualified person to be commenting on Dojo. But he helps CNBS with their continued negativity towards Tesla and Elon.

[torfrjv]

Please stop interviewing Craig. He's been a Tesla/Elon hater for years, and he's been wrong about both that entire time.

[XOPOIIIO]

The greatest person who ever lived. Hope he succeeds in at least half of what he plans.