AFP
Recent reports reveal that Elon Musk has directed Nvidia to prioritize the delivery of AI chips to X and xAI over Tesla. Musk envisions transforming Tesla into a leader in AI and robotics, necessitating a significant number of processors from Nvidia to build the required infrastructure.
During Tesla’s first-quarter earnings call in April, Musk announced plans to increase the deployment of Nvidia’s H100 AI chips from 35,000 to 85,000 by the end of the year, with a focus on enhancing the company’s AI capabilities. However, internal emails from Nvidia suggest that Musk may have exaggerated the actual chip procurement needs for Tesla.
Instead, Musk redirected a substantial portion of the AI processors meant for Tesla to X, causing delays and disruptions in Tesla’s plans. This decision, involving over $500 million worth of GPUs, has raised concerns among Tesla shareholders.
The conflicting statements made by Musk during Tesla’s earnings call and his posts about AI spending at X have further fueled skepticism among shareholders about Musk’s priorities and commitments as CEO.
Despite attempts to reach out to Nvidia and representatives from Tesla and X for comments, there has been no response. The decline in Tesla’s sales and reputation, partly attributed to Musk’s behavior, has led to a 29% drop in Tesla’s stock price this year.
Elon Musk
Tesla
Artificial Intelligence
2024-06-06 19:00:03
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