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Musk asks Nvidia to ship AI chips booked for Tesla to X and xAI, CNBC reports

In Technology
June 04, 2024

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

“Elon prioritizing X H100 GPU cluster deployment at X versus Tesla by redirecting 12K of shipped H100 GPUs originally slated for Tesla to X instead,” an internal Nvidia memo from December showed, according to the CNBC report.

“In exchange, original X orders of 12K H100 slated for Jan and June to be redirected to Tesla,” the memo said.

Tesla did not immediately respond to a Reuters request for comment, while Nvidia declined to comment.

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

Earlier this year, Musk said Tesla will increase the number of H100s – Nvidia’s most advanced AI processors – that it has deployed and will spend $10 billion this year “in combined training and inference AI”.

Tesla has been battling a slowdown in the EV market and announced layoffs of more than 10% of its staff globally in April.

(Reporting by Yuvraj Malik in Bengaluru; Editing by Devika Syamnath)

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