Elon Musk Diverts $500 Million Nvidia AI Chips from Tesla to X and xAI: CNBC

Jun 4, 2024, 01:06 PM

Elon Musk has ordered Nvidia to prioritize the shipment of thousands of AI chips initially reserved for Tesla to his other ventures, X (formerly Twitter) and xAI. This decision, reported by CNBC, has significant implications for Tesla, delaying the company's receipt of over $500 million worth of processors by several months. Emails obtained by CNBC reveal that 12,000 AI chips were redirected. The diverted AI chips are expected to benefit both X and xAI, potentially enhancing their technological capabilities. The move has sparked discussions about Musk's fiduciary duties and the impact on Tesla's shareholders, who are set to vote on a $56 billion pay package for Musk.