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Musk Says xAI Will Outcompute Everyone in Five Years as Microsoft Warns of Massive AI Costs

Musk’s escalation in compute ambitions meets Microsoft’s caution that staying at the front of AI demands staggering long-term investment and scarce talent.

Overview

  • Elon Musk said xAI will possess more AI compute within five years than all other institutions combined, posting the claim in response to an employee’s recruitment message.
  • xAI reports it deployed a supercluster of 100,000 NVIDIA H200s in 19 days, a timeline NVIDIA CEO Jensen Huang has said typically takes about four years.
  • Musk set an internal goal for xAI to reach the equivalent of 50 million H100-class GPUs over five years, framing an aggressive expansion path.
  • An employee post citing SemiAnalysis said xAI painted “Macrohard” on the roof of its Colossus data center in Memphis, a pointed reference to Microsoft that has not been independently verified.
  • Microsoft AI chief Mustafa Suleyman said competing at the top tier will require hundreds of billions of dollars over 5–10 years, emphasizing gigawatt-scale infrastructure and intense competition for AI talent.