Nvidia is set to start shipping its next-generation Blackwell semiconductor chips later this year—but there’s fresh evidence concern over demand for its current line of products is overdone. Elon Musk is an excellent example.
Musk said on Monday that xAI, the artificial intelligence start-up he founded in March 2023, had successfully brought its Colossus AI training infrastructure online after just 122 days.
He said in a post on X that the cluster, which is powered by 100,000 Nvidia H100 graphics processing units (GPUs), would be “the most powerful AI training system in the world,” adding that it would “double in size” in a few months.
It’s a reminder that demand for Nvidia’s current generation of chips remains robust, even before it rolls out its Blackwell GPUs, which are expected to ship in the fourth quarter.
xAI isn’t alone in inking a deal with the semiconductor giant. In January, Meta Platforms, Inc. CEO Mark Zuckerberg said the company plans to have boughtbillions of dollars worth of GPUs by the end of this year.
Nvidia shares fell 2.1% in premarket trading on Tuesday. Investors have had the whole of the long weekend to digest the company’s latest earnings, where it beat analysts’ top-line targets but issued slightly underwhelming profit guidance.
Among other chip makers, Broadcom fell 0.5% ahead of the opening bell, while Advanced Micro Devices slipped 0.8% and Qualcomm was down 0.6%.
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