Elon Musk’s AI venture, xAI, is set to unveil its latest chatbot, Grok 3, on Monday at 8 p.m. Pacific Time. Musk has described Grok 3 as the “smartest AI on Earth,” highlighting its advanced reasoning capabilities that reportedly surpass existing chatbots.

To develop Grok 3, xAI utilized a supercomputer named Colossus, which comprises 100,000 NVIDIA H100 GPUs.. This massive infrastructure was assembled in just 122 days and has been operational for nearly two months.

In addition, xAI is nearing a deal to acquire over $5 billion worth of AI-optimized servers from Dell Technologies, further bolstering its computational resources.

The release of Grok 3 is highly anticipated, with a live demonstration scheduled to showcase its capabilities.

How xAI’s AI Training Impacts NVIDIA Stock

🚀 A Bullish Sign for NVIDIA’s AI Growth

  • The 100K NVIDIA H100 GPUs powering xAI’s supercomputer Colossus reinforce NVIDIA’s dominance in AI chips.
  • AI demand is surging, and companies are spending billions on NVIDIA hardware—further solidifying its market leadership.

📈 Stock Implications:

  • NVIDIA ($NVDA) has been a Wall Street favorite, with AI fueling record-breaking revenue growth.
  • Other AI firms will likely follow xAI’s lead, boosting NVIDIA’s long-term demand for AI hardware.
  • Investors should watch NVIDIA’s earnings report on February 21, where AI-related sales will be a major focus.

📉 Bearish Risks:

  • While AI demand is booming, supply chain constraints could limit NVIDIA’s ability to meet orders.
  • Competition from AMD ($AMD) and custom AI chips from Google ($GOOGL), Microsoft ($MSFT), and Meta ($META) could pressure future market share.

For now, Elon Musk’s massive AI investment is a clear bullish signal for NVIDIA. The market will be watching closely to see if Grok 3 lives up to Musk’s hype—and what it means for AI’s next phase.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

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