Why Elon Musk’s next startup could 10X ChatGPT – Fat Tail Daily

Today I’m handing the platform over to US technology entrepreneur James Altucher. He brings exciting news from Memphis, Tennessee on the world’s next supercomputer…and where it could take us.

Best wishes,

Callum Newman,
Editor, Small-Cap Systems and Australian Small-Cap Investigator

*****

By James Altucher, Tuesday, 25 March 2025

If you want to get a sense of the speed and power of AI technology, there’s probably no better place to do so than a peek inside a huge facility in Memphis, Tennessee…

Inside, Elon Musk and his new team at his startup, xAI, are working on a massive and secretive AI project called Project Colossus.

In order to bring this project to fruition, they have already launched some 100,000 units of Nvidia’s most advanced AI chip, the H100. This is the most powerful computer chip ever made, at least for now.

These chips can perform over 60 trillion calculations per second, and they’re considered the holy grail of AI.

So when you combine 100,000 of them, that amounts to more accumulated computing firepower than Google, Microsoft, Meta, and even Nvidia.

That makes this facility the most advanced AI centre on the planet.

It’s already an impressive feat until you consider it took only three months to build.

But what’s coming next could more than triple Project Colossus’s computing power.

With 200,000 more units of Nvidia’s chips by the summer of 2026 — including a sizeable amount of the next-generation Nvidia chip, called Blackwell — the AI technology Musk and his colleagues are developing is poised to become one of the greatest breakthroughs of modern times.

The future innovations that could spring from this AI supercentre are mind-boggling and could help solve some of humanity’s greatest problems.

It could lead to fully autonomous driving, extend human lifespan, advance material and biological sciences by decades, find a cure for cancer, develop new energy systems we’ve yet to dream of…the sky’s the limit!

And for investors who spot the opportunity ahead of the pack could be set to benefit.

By 2030, IDC, the International Data Corporation, believes AI will add a whopping $20 trillion to the global economy. That’s roughly 6.5 times larger than the market caps of Nvidia, Apple and Microsoft, combined.

And it is why the tech titans like Google, Microsoft and Amazon have pledged to invest enormous sums of money into AI in the years ahead — to the tune of hundreds of billions of dollars…they all want to come out on top of the race to build next-level AI and reap the potential rewards.

Musk has predicted his AI supercomputer will eventually help generate up to US$1 trillion annually for xAI.

A figure like that might sound crazy, until you realise the AI we’re talking about is basically 10 times more capable than ChatGPT — the fastest-growing consumer app of all time.

This is the AI moment I’ve been waiting for my entire career. I’ve been working in the AI field for the better part of the last four decades. I helped pioneer AI trading on Wall Street.

You can see why I’ve been watching the developments at xAI very carefully, and things are moving fast…

Moving at the Speed of AI

As I mentioned, Musk has said he wants to triple Project Colossus’s computing capacity, starting as soon as the end of the year. He also wants to buy 300,000 units of another new Nvidia chip the company is releasing in 2025.

The extra $6 billion xAI just raised will certainly help with the purchase.

That brings the total raised for this private startup to $12 billion.

And as Yahoo Finance reports, xAI is already on the cusp of reaching a $75 billion valuation.

Because xAI was formed in the Spring of 2023, that makes it one of the fastest-growing companies in history. I believe it has the potential to one day surpass even Nvidia and every other AI company in the world.

Silicon Valley venture capital is all over this play.

Sequoia Capital, Andreessen Horowitz and Qatar’s sovereign wealth fund are among the big players already diving in.

But here’s the thing.

Unfortunately, unless you’re an accredited private investor with a deep Rolodex of insider contacts, or also happened to have helped Musk personally finance his acquisition of Twitter, then you can’t buy shares of xAI on the open market.

Because of that, the vast majority of people have missed out entirely on this growth so far.

However, xAI is a clear example of what I call AI 2.0. It’s the next wave of companies set to storm the global markets.

Fortunately, there are many more in play than just xAI — and these you can buy on public markets.

More soon…

Best,

James Altucher,
Editor, Investment Network Australia

*****

By Murray Dawes, Tuesday, 25 March 2025

There are multiple ways to work out where the buying and selling pressure should be in markets.

One of my favourite ways to work out where the pressure points are is to look at major waves and trace out the buy and sell zones and the point of control, which is the midpoint of the wave or range.

After a large major wave advance has occurred, you will often see time spent in the guts of the wave bouncing around between the buy and sell zone.

The point of control often acts as good support initially. But if the point of control can’t hold, prices will often rotate quite quickly down to the buy zone.

If the long-term uptrend remains intact, waiting for a buy signal after a test of the buy zone is often the best entry point for solid trades.

If we consider the above when looking at the S&P/ASX 200, you can see that there was a major advance made from October 2023 to February 2025.

The recent correction saw a retest of the point of control which has held for now.

If we see a rally from here there should be plenty of resistance around the sell zone between 8,150 to 8,380.

If another leg down occurs and the point of control doesn’t hold a rotation to the buy zone between 7,000 to 7,200 could be expected.

I will start getting excited looking for buy signals down there.

Regards,

Murray Dawes,
Editor, Retirement Trader and Fat Tail Microcaps