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NVIDIA Plans To Build AI Factories To Challenge Tesla

NVIDIA and Foxconn to build AI factories to challenge Tesla, OpenAI pauses 'Arrakis' amid setbacks.

☕ GM

Hey everyone,

Today we're discussing NVIDIA's plan to build AI factories with Foxconn and OpenAI's rare setback with the development of the 'Arrakis' model.

Let's get right to it.

⭐ FEATURED

Source: Foxconn

Nvidia and Foxconn have announced a partnership to build "AI factories," data centers designed to offer supercomputing capabilities that will accelerate the development of self-driving cars, autonomous machines, and robotics. These AI factories will leverage Nvidia's GPU computing infrastructure, processing, refining, and transforming vast data quantities. This venture sets them up as direct competitors against Tesla's Dojo supercomputer.

In a rare development, OpenAI has ceased progress on its 'Arrakis' model due to underperformance in enhancing efficiency through sparsity and failing to realize cost savings. This decision came amidst a $10 billion deal negotiation with Microsoft, causing a strategic pivot and eliciting disappointment among Microsoft executives.

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That's all for today. Thanks for reading! Got a question? Feel free to reply to this email.

Stay connected on X @gpte_ai and @nicholasalevras.


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