, the leader in graphics processing units (GPUs), maybe in line for a big deal from billionaire Elon Musk, as per a report.Musk’s AI start-up, xAI, is building a next-generation supercomputer called Colossus to train its large language model (LLM) Grok, designed to rival models like OpenAI’s ChatGPT, according to The Motley Fool. To make that happen, the company is relying heavily on Nvidia’s industry-leading chips, as per the report.

During the initial development stage, xAI used 100,000 Nvidia GPUs to develop the Colossus system, according to The Motley Fool. The number doubled in no time to 200,000 chips as the firm increased training capacity for Grok, as per the report.

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Then, a few months ago, Musk along with his team of developers decided to doubled down on securing more GPUs, he at that time said the next training cluster would be five times larger than the current infrastructure, as per The Motley Fool.

That means Colossus 2 would need 1 million chips (which translates to five times the 200,000 referenced above) and Musk had estimated the total cost for this project would be between $25 billion and $30 billion, according to the report.However, a new report from Beth Kindig, the CEO and lead tech analyst at the I/O Fund, revealed that Colossus 2 may cost nearly $40 billion, The Motley Fool reported. This estimation is based on Nvidia's chips which sell for between $30,000 and $40,000 on average, according to the report.ALSO READ: World leader in digital assets? Toronto emerges as a global blockchain hotspot as Canada’s steady crypto rules outpace America’s political gridlock
Training large AI models like Grok requires enormous computing power, which Nvidia’s GPUs provide.

xAI started with 100,000 Nvidia GPUs and quickly expanded to 200,000 chips, as per The Motley Fool.