The IRS Is Buying an AI Supercomputer From Nvidia

According to The Intercept, the IRS is set to purchase an Nvidia SuperPod AI supercomputer to enhance its machine learning capabilities for tasks like fraud detection and taxpayer behavior analysis. From the report: With Elon Musk's so-called Department of Government Efficiency installing itself at the IRS amid a broader push to replace federal bureaucracy with machine-learning software, the tax agency's computing center in Martinsburg, West Virginia, will soon be home to a state-of-the-art Nvidia SuperPod AI computing cluster. According to the previously unreported February 5 acquisition document, the setup will combine 31 separate Nvidia servers, each containing eight of the company's flagship Blackwell processors designed to train and operate artificial intelligence models that power tools like ChatGPT. The hardware has not yet been purchased and installed, nor is a price listed, but SuperPod systems reportedly start at $7 million. The setup described in the contract materials notes that it will include a substantial memory upgrade from Nvidia.

Though small compared to the massive AI-training data centers deployed by companies like OpenAI and Meta, the SuperPod is still a powerful and expensive setup using the most advanced technology offered by Nvidia, whose chips have facilitated the global machine-learning spree. While the hardware can be used in many ways, it's marketed as a turnkey means of creating and querying an AI model. Last year, the MITRE Corporation, a federally funded military R&D lab, acquired a $20 million SuperPod setup to train bespoke AI models for use by government agencies, touting the purchase as a 'massive increase in computing power' for the United States.

How exactly the IRS will use its SuperPod is unclear. An agency spokesperson said the IRS had no information to share on the supercomputer purchase, including which presidential administration ordered it. A 2024 report by the Treasury Inspector General for Tax Administration identified 68 different AI-related projects underway at the IRS; the Nvidia cluster is not named among them, though many were redacted. But some clues can be gleaned from the purchase materials. 'The IRS requires a robust and scalable infrastructure that can handle complex machine learning (ML) workloads,' the document explains. 'The Nvidia Super Pod is a critical component of this infrastructure, providing the necessary compute power, storage, and networking capabilities to support the development and deployment of large-scale ML models.'

The document notes that the SuperPod will be run by the IRS Research, Applied Analytics, and Statistics division, or RAAS, which leads a variety of data-centric initiatives at the agency. While no specific uses are cited, it states that this division's Compliance Data Warehouse project, which is behind this SuperPod purchase, has previously used machine learning for automated fraud detection, identity theft prevention, and generally gaining a 'deeper understanding of the mechanisms that drive taxpayer behavior.'

Read more of this story at Slashdot.