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Elon Musk Diverts $500 Million Nvidia AI Chips from Tesla to X and xAI, Delays Tesla

Jun 4, 2024, 01:15 PM

Elon Musk has directed Nvidia to prioritize the shipment of thousands of AI chips, originally reserved for Tesla, to his social media company X (formerly Twitter) and his artificial intelligence startup xAI. This decision, reported by CNBC, is expected to delay Tesla's receipt of over $500 million worth of processors by several months. The chips in question include the H100 GPUs, which are crucial for Tesla's AI and autonomous vehicle projects. The move is estimated to cost between $9 billion and $12 billion, with each B200 chip priced between $30,000 and $40,000. This reallocation of resources could significantly impact Tesla's development timeline for its AI and robotics infrastructure.