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Elon Musk wanted way more Nvidia chips for his Grok chatbot than Oracle could provide, Larry Ellison says

Dec 12, 2023 - markets.businessinsider.com
Nvidia's stock has tripled this year as investors predict the AI boom will increase demand for graphics chips. Oracle's Larry Ellison revealed that Elon Musk's xAI needed more Nvidia chips than they could supply last quarter. Musk uses Oracle's servers for his xAI company's chatbot, Grok, and while Oracle was able to provide enough chips for the first version, it fell short of Musk's demands.

Oracle plans to build 100 new cloud data centers to meet the demand from its customers. Oracle CEO Safra Catz said the company held back last quarter to ensure it could provide larger-scale services in the future. Musk has been purchasing Nvidia chips for his companies, stating that they would take as many as Nvidia could deliver. The high demand for graphics chips is good news for Nvidia investors.

Key takeaways:

  • Nvidia stock has tripled this year due to the increased demand for graphics chips, fueled by the AI boom.
  • Elon Musk's xAI company has a high demand for Nvidia chips, more than Oracle could supply last quarter.
  • Oracle is investing heavily to meet the increasing demand from clients like Musk, with plans to build 100 new cloud data centers.
  • The high demand for graphics chips, as indicated by Musk's xAI, is positive news for Nvidia investors.
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