Elon Musk diverts Nvidia AI chips booked for Tesla to X, xAI: report

Tesla CEO Elon Musk has instructed Nvidia to prioritize shipments of AI processors to his firms X and xAI over the electric-vehicle maker, CNBC reported on Tuesday.

The information alerts Musk is giving priority to artificial intelligence-related development outside Tesla and comes forward of an important shareholder vote on his pay package at the company.

“Elon prioritizing X H100 GPU cluster deployment at X versus Tesla by redirecting 12K of shipped H100 GPUs initially slated for Tesla to X as an alternative,” an inner Nvidia memo from December confirmed, in response to the CNBC report.

The information alerts Elon Musk is giving priority to synthetic intelligence-related improvement exterior Tesla and comes forward of an important shareholder vote on his pay bundle on the firm. AP

“In change, unique X orders of 12K H100 slated for Jan and June to be redirected to Tesla,” the memo stated.

The change delays Tesla’s receipt of greater than $500 million in processors by months, in response to CNBC.

In a post on X, Musk stated Tesla had no place to retailer and activate the Nvidia processors, including {that a} deliberate growth of its Giga manufacturing facility in Texas was virtually full. “This may home 50k H100s for FSD (full self-driving) coaching.”

He introduced earlier this 12 months Tesla was rising the variety of Nvidia’s most superior chips it has deployed and can spend $10 billion on AI this 12 months, as a part of initiatives to advance the event of FSD software program and robotics.

The billionaire can be pursuing AI improvement at X, and xAI, for chatbot Grok, amongst different functions. XAI, which Musk launched in 2023 to problem ChatGPT-creator OpenAI, raised $6 billion in funding final month.

Tesla shareholders will vote on June 13 on a pay bundle for Musk that’s thought of to be the most important for a CEO in company America.

Musk stated earlier this 12 months Tesla was rising the variety of Nvidia’s most superior chips it has deployed and can spend $10 billion on AI this 12 months. Nvidia CEO Jensen Huang, above. AFP by way of Getty Pictures
The change delays Tesla’s receipt of greater than $500 million in processors by months, in response to CNBC. REUTERS

In a discussion on X associated to his pay, Musk stated: “I’m uncomfortable rising Tesla to be a pacesetter in AI & robotics with out having ~25% voting management… Except that’s the case, I would favor to construct merchandise exterior of Tesla.”

Tesla, which didn’t reply to a request for remark, has been battling a slowdown within the EV market and introduced layoffs of more than 10% globally in April.

Nvidia declined to remark.

Tesla shares fell lower than 1%.


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