Home Science Technology Elon Musk Redirects Nvidia AI Chips from Tesla to X and xAI

Elon Musk Redirects Nvidia AI Chips from Tesla to X and xAI

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Tesla CEO Elon Musk has reportedly instructed Nvidia to prioritize shipments of AI processors to his companies X and xAI over Tesla, according to a CNBC report on Tuesday.

An internal Nvidia memo from December revealed that Musk directed the prioritization of X H100 GPU cluster deployment at X over Tesla, redirecting 12,000 shipped H100 GPUs originally intended for Tesla to X instead. In exchange, original X orders of 12,000 H100s slated for January and June will be redirected to Tesla.

The change in allocation delays Tesla’s receipt of over $500 million worth of processors by several months, as reported by CNBC. Tesla did not immediately respond to a request for comment from Reuters, while Nvidia declined to comment on the matter.

Earlier this year, Musk announced that Tesla would increase its deployment of H100s, Nvidia’s most advanced AI processors, and would invest $10 billion in combined training and inference AI this year.

Tesla has been facing challenges amid a slowdown in the electric vehicle market and announced layoffs of over 10% of its global staff in April.

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