Tesla

Tesla CEO relocated Nvidia AI chip orders to X and xAI

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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.

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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.

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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.

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

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