Elon Musk's AI Spur Drives Taiwan Supply Chain

Elon Musk's xAI notched another win with Colossus II, its second giant AI cluster now operational, the world's first GW-scale (1bn-watt) AI data center, scaling to 1.5GW by April. Analysts expect this move to drive Wistron, Inventec, Supermicro and partners.

Elon Musk revealed the milestone on his X platform. In 2024, xAI's first cluster, Colossus I, took 122 days to build a 200,000 Nvidia H200 GPU force, doubling within 92 days after.

Colossus II now powers xAI's Grok model. Centred in Memphis, Tennessee, xAI develops a second nearby data center and has secured a third building.

The chain includes Wistron, Inventec and Supermicro, the latter working closely with Taiwan's Delta and Leadtek. Supermicro CEO, Charles Liang, met Musk in December, unveiling plans for Nvidia GB300 AI servers in Colossus 2, targeting 1 million GPUs by 2026.

Wistron hit record 2025 revenue and profit, with EPS at NT$9.04. It sees unrelenting AI server demand keeping Q1 robust despite seasonality.

Inventec's 2025 sales reached a new high of NT$691.17 billion (up 6.94%). It expects server shipments to sustain double-digit growth in 2026 amid AI momentum.