Musk Asks Nvidia to Prioritize Chips Shipments to X, xAI Over Tesla

June 10, 2024 08:05:00


Elon Musk, CEO of Tesla Inc. (NASDAQ: TSLA) as well as X and xAI, requested Nvidia give priority to processor shipments to X and xAI rather than Tesla, which has baffled many in the tech industry. An internal memo seen by media outlets revealed that the businessman and investor plans to grow Tesla to become a trailblazer in artificial intelligence and robotics, which will require plenty of expensive processors to establish its infrastructure.

Tesla was expected to receive more than $500 million worth of chips from Nvidia. The internal memo with a December date said that the X H100 GPU cluster use at X instead of Tesla was done by rechanneling 12,000 of delivered H100 GPUs that were originally ordered for Tesla. These chips were meant for the…

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