Published in AI

Musk diverts AI Nvidia chips away from Tesla

by on05 June 2024


Claims there is no room for them

Elon [look at me] Musk as let slip that a bunch of Nvidia chips, which were supposed to power Tesla's electric dreams, have taken a little detour to X Corp because Tesla's cupboards were too full.

In a 'casual' post on X, Musk said Tesla didn’t have any room for Nvidia's shiny H100 chips, so they might as well gather dust elsewhere.

This was his cheeky comeback to a CNBC story spilling beans on Nvidia's secret Santa memo from last December. It seems 12,000 of Nvidia's crème de la crème AI chips, destined for Tesla, ended up playing musical chairs with X Corp.

The narrative takes a turn with Musk's strategic shuffle, a move that relegates Tesla's core car business to the backseat. His attention is now fully on the realm of robots and driverless cars

Musk's AI aspirations face a reality check, and he might have to leave the business if he does not secure a larger share of the Tesla pie.

Musk has 13 per cent of Tesla's shares, or 21 per cent if you count the options he's sitting on. But he wants 25 per cent to flex his muscles in the boardroom.

On 13 June,  it's showtime at Tesla's AGM, where the money talk turns to Musk's jackpot pay deal. Shareholders may not be so keen on paying him his $56 billion salary when he is clearly spending a lot of his time propping up other companies.

Musk mentions that Tesla's Texas Gigafactory is nearly ready to roll out the red carpet for 50,000 H100 chips. And just for fun, he drops that Tesla's going to splash out half of its $10 billion AI piggy bank on homegrown tech, like its very own supercomputer, Dojo.

Musk casually notes that Nvidia's gear is a bargain, only costing two-thirds of Tesla's AI budget. So, they're planning to give Nvidia $3 to $4 billion this year. Because why not?

Tesla's cooking up its own supercomputer stew to whip up some driverless car magic. By the year's end, they plan to boost their H100 chip army from 35,000 to a whopping 85,000.

Last modified on 05 June 2024
Rate this item
(3 votes)