The AI arms race isn’t about models anymore. It’s about infrastructure: chips, data centres and $100B dreams
Naturally Elon Musk is up to his neck in it.
Forget the leaderboard. The real battle is underground. It's in warehouses filled with silicon and steel.
OpenAI has announced a 4.5-gigawatt partnership with Oracle to power its Stargate initiative, expected to run over two million chips. Price tag? North of $30 billion.
Elon Musk's xAI is gunning for 50 million units of H100-equivalent compute, aiming to outscale everyone in both power and efficiency. He’s reportedly chasing $12 billion in funding to build Colossus 2. It's to be his next-gen AI data empire.
Why does any of this matter?
Because the fastest model means nothing if you can't serve it. Chips run the models. Data centres deliver the experience. And infrastructure is the bottleneck.
We’ve left the model wars. Now it’s about capacity. Whoever builds the biggest, fastest, smartest network wins.
#AIinfrastructure #xAI #OpenAIStargate