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Elon Musk reportedly diverted thousands of AI chips from Tesla to X

Jun 04, 2024 - theverge.com
Elon Musk has reportedly redirected thousands of Nvidia-made AI chips from Tesla to his social media company X, potentially delaying Tesla's acquisition of $500 million worth of processors by months. The chips were intended for Tesla's transformation into a leader in AI and robotics, with Musk previously stating that Tesla would increase its acquisition of Nvidia’s H100 AI chips from 35,000 to 85,000 by the end of the year. However, internal emails from Nvidia suggest that many of these chips are now heading to X and its AI subsidiary, xAI.

This move could upset Tesla investors who are banking on Musk's promise of fully autonomous vehicles. Tesla plans to reveal its first robotaxi vehicle in August, but its Autopilot and Full Self-Driving features have been under scrutiny due to numerous crashes. Meanwhile, Musk's AI startup, xAI, is competing with OpenAI, Google, and others in the field of generative AI. Nvidia, the supplier of the AI chips, has seen significant growth due to the high demand for its GPUs.

Key takeaways:

  • Elon Musk has reportedly ordered thousands of Nvidia-made AI chips, originally intended for Tesla, to be redirected to his social media company X, potentially delaying Tesla's acquisition of $500 million worth of processors.
  • Musk has previously stated that Tesla would increase its acquisition of Nvidia's H100 AI chips and spend $10 billion in combined training and inference AI, but emails suggest that many of these chips are now going to X and its AI subsidiary, xAI.
  • This move could upset Tesla investors who are relying on Musk's promise of fully autonomous vehicles, with the company planning to unveil its first robotaxi vehicle in August.
  • Nvidia, the maker of the AI chips, has seen significant growth due to the demand for its GPUs, becoming the third most valuable company in the world and reporting 200 percent revenue growth in the last quarter.
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