Nvidia stock on Tuesday jumped to another record high — its third in as many trading days. The stock responded to a weekend report that Elon Musk's xAI venture is buying Nvidia AI chips for a powerful new supercomputer.
Musk's artificial intelligence startup is working with Oracle to build the new data center, the Information reported Saturday.
Musk said xAI will require as many as 100,000 specialized semiconductors to train and run the next version of its AI chatbot Grok, according to an investor presentation. The supercomputer will use Nvidia's H100 graphics processing units, or GPUs, the Information said.
Musk hopes to have the supercomputer, which he described as a "gigafactory of compute," in operation by fall 2025, the report said.
Nvidia Stock Hits All-Time High
On the stock market today, Nvidia stock surged 7% to close at 1,139.01. Earlier in the session, it notched an all-time high of 1,149.39.
On Sunday, xAI announced a $6 billion funding round. It said key investors include Valor Equity Partners, Vy Capital, Andreessen Horowitz, Sequoia Capital, Fidelity Management & Research Co., Prince Alwaleed Bin Talal and Kingdom Holding. The Wall Street Journal said the new funding gives xAI a valuation of about $24 billion.
In late 2023, xAI unveiled Grok as a rival chatbot to OpenAI's ChatGPT, Google's Gemini and others.
Nvidia stock has been on a tear since the company crushed expectations for its fiscal first quarter and with its guidance.
Further, Nvidia stock is on five IBD stock lists: IBD 50, Leaderboard, Big Cap 20, IBD Sector Leaders and Tech Leaders.
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