Tesla ($TSLA) to Spend $3-4 Billion on Nvidia ($NVDA) Hardware in 2024

Jun 4, 2024, 06:25 PM

Tesla CEO Elon Musk announced that the company plans to spend between $3 billion and $4 billion on Nvidia hardware in 2024. This expenditure is part of Tesla's broader AI-related investments, which total around $10 billion for the year. Nvidia chips are crucial for Tesla's AI training superclusters, accounting for approximately two-thirds of the cost. Additionally, Tesla will invest $5 billion in its in-house designed inference computers and sensors for its cars, as well as its Dojo supercomputer system. Musk highlighted the importance of Nvidia's H100 GPUs, noting that 'AI GPUs are harder to buy than drugs.' $TSLA and $NVDA stocks have shown positive movement following the announcement.