Musk's AI Data Centers Get Boost from Supermicro CEO; Tesla, xAI Supercomputers to Feature 350,000 Nvidia GPUs

July 8, 2024 : Elon Musk’s decision to utilize liquid cooling technology for Tesla and xAI’s new artificial intelligence (AI) data centers at the Gigafactory has garnered praise from industry leader Charles Liang, CEO of Supermicro.

Supermicro, publicly traded on the NASDAQ exchange under the symbol SMCI, is a renowned manufacturer of computer servers and a significant player in the data center technology space.

Liang’s endorsement came via a social media post on the platform formerly known as Twitter (now referred to as “X”). In the post, Liang expressed his admiration for Musk’s pioneering approach, stating it could significantly reduce environmental impact. He highlighted the potential for this technology to contribute to preserving billions of trees.

Supermicro champions direct liquid cooling (DLC) as a superior alternative to traditional air-cooling methods for data centers. The company claims DLC can achieve an impressive 89% reduction in electricity costs associated with cooling infrastructure. This translates to a substantial decrease in overall energy consumption by data centers, which are known to be significant energy users.

The upcoming Gigafactory data centers will reportedly house 350,000 Nvidia graphics processing units (GPUs). GPUs are specialized processors that are well-suited for the intensive computational tasks required in AI training. Tesla and xAI’s data centers will be operational within the next few months.

Tesla and xAI’s embrace of liquid cooling technology signifies a potential turning point for the data center industry. This approach could pave the way for more sustainable and energy-efficient data center operations, contributing to a reduced environmental footprint.

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