Tesla CEO relocated Nvidia AI chip orders to X and xAI

Tesla CEO, Elon Musk has relocated orders for Nvidia AI chips from the EV maker to his other two companies – X and xAI.

CNBC reported that Musk told the chipmaker to prioritize shipments of processors to X and xAI ahead of Tesla based on a conversation email inside Nvidia. During the first quarter earning results, Nvidia mentioned that Tesla has more than 35,000 H1000 GPUs for Full Self Driving (FSD) computing systems.

On the other hand, Musk is also increasing the AI data center capacities of social media site X and his AI firm xAI with more chipsets. Recently, xAI raised $6 billion in investment and aims to use this fund to improve the AI infrastructure.

Musk said that xAI will use 100,000 liquid-cooled training luster and will be online within a few months. The AI company will unveil 300,000 B200-powered clusters with CX8 networking next summer.

Reacting to this new report, the Tesla Chief explained that the EV maker had no place to set up these new Nvidia chipsets.

“So they would have just sat in a warehouse,” he wrote on X on Tuesday.

He elaborated that the South Extension of Giga Texas is nearly completed and will host 50,000 H100 Nvidia GPUs for FSD training.