Under the direction of CEO Michael Dell, Dell Technologies Inc. has announced a collaboration with NVIDIA Corporation (NASDAQ:NVDA) to build an AI Factory that would enhance the functionality of Grok, an AI model created by Elon Musk's xAI firm.

With the help of @nvidia, we're constructing a Dell AI factory to power @grok for @xai @elonmusk.— June 19, 2024, Michael Dell (@MichaelDell)

A generative AI chatbot named Grok was developed in reaction to ChatGPT's growing popularity. OpenAI is a company that Musk co-founded. In addition to its strong text capabilities, Grok, which is built on a sizable language model, can analyze a wide variety of visual data, such as papers, diagrams, charts, screenshots, and photos.

The first-generation multimodal model, Grok-1.5V from xAI, was unveiled in April. The business has highlighted Grok's comprehension of the physical environment, citing reports that the AI model beat rivals in the RealWorldQA benchmark, which gauges spatial awareness in the actual world.

Specifically, half of the racks for the supercomputer that xAI is creating are being assembled by Dell.

Elon Musk June 20, 2024 (@elonmusk)

Earlier in June, xAI revealed plans to build a supercomputer that they are calling the "Gigafactory of Compute," with the goal of having it operational by the fall of 2025. The goal of this project is to improve the capabilities of the Grok AI chatbot and is anticipated to be a joint venture with Oracle (NYSE:ORCL).

Up to 100,000 H100 GPUs from Nvidia, which are based on the Hopper architecture, will be used by the future supercomputer, which may make it four times larger than the biggest GPU clusters now in use. Musk's action is interpreted as an effort to outperform competing GPU clusters in terms of capacity and size.