Musk is asking for artificial intelligence chips for his companies X and xAI instead of Tesla, causing investor concerns and delays in car production.
AI Priority
Unusual request
Elon Musk asked NVIDIA to supply 12 thousand H100 artificial intelligence processors to his companies X and xAI instead of Tesla. This correspondence, according to CNBC, indirectly indicates an exaggeration of the scale of Tesla purchases.
Ambitious plans
Previously, Musk stated that he intends to make Tesla a leader in the field of artificial intelligence and robotics, which will require a significant number of expensive NVIDIA chips. In April, he announced that Tesla would increase the number of H100 chips from 35 thousand to 85 thousand by the end of the year. Musk also mentioned that Tesla will spend $10 billion on AI training this year.
Investor doubts
However, internal NVIDIA correspondence suggests that Musk exaggerated the scale of purchases Tesla. He redirected a significant batch of AI chips reserved for Tesla to companies X and xAI. Tesla shares fell 1% following the news. Musk's request delayed more than $500 million worth of chip deliveries to Tesla, which could lead to delays in work and research.
Conflict with shareholders
The new information highlights the growing conflict between Musk and some Tesla shareholders who question his ability to meet obligations while simultaneously running a number of other companies and shifting funds between them. It is worth noting that Tesla provides the majority of Musk's wealth.
Related Companies
Companies X and xAI are closely related: X Corp investors own 25% of xAI, and xAI uses the power of X's data centers to train and operate the chatbot Grok.
Tesla's problems
Tesla shareholders have reason to worry as the company experiences an alarming decline in sales, due in part to its aging electric vehicle lineup and increasing competition. Tesla's reputation has also suffered in the US due to Musk's antics and political statements. Tesla shares are down 29% this year.
Glossary
- NVIDIA is a leading GPU and artificial intelligence technology company.
- The H100 is a powerful artificial intelligence chip developed by NVIDIA for training and running AI models.
- Tesla is an American company, manufacturer of electric vehicles and energy products.
- X (formerly Twitter) is a technology company that owns the social network of the same name, acquired by Elon Musk in 2022.
- xAI is a company created by Elon Musk to develop artificial intelligence.
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Answers to questions
How many NVIDIA H100 artificial intelligence chips did Elon Musk request for his companies X and xAI instead of Tesla ?
Why does the NVIDIA email show an exaggerated picture of Tesla's purchasing?
What consequences could a delay in receiving processors for Tesla have?
Why are Tesla shareholders concerned about Elon Musk's actions?
What other factors could negatively affect Tesla?
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Discussion of the topic – Elon Musk transferred 12 thousand NVIDIA H100 chips from Tesla to X and xAI
Elon Musk asked NVIDIA to send 12 thousand H100 artificial intelligence processors to his companies X and xAI instead of Tesla. This indirectly indicates Tesla's exaggerated purchases earlier.
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FionaBell
What a news! Such letters and information about the transfer of purchases of processors for Tesla to other Musk companies really sound alarming. 🤔 Most likely, he wants to focus on the development of artificial intelligence in X and xAI, transferring some resources there from Tesla.
GiovanniRossi
Yes, this news about NVIDIA’s letters casts doubt on Musk’s statements about Tesla’s plans to purchase processors. Apparently, he really went too far with his promises to shareholders. 💸 This could ultimately lead to delays in development and research for Tesla itself.
КлаудияВолкова
In my opinion, Musk is simply doing everything possible to advance his ambitious projects in the field of artificial intelligence. 🤖 No wonder he's throwing a lot of resources at X and xAI, even taking processors away from Tesla. He has always been focused on breakthrough technologies of the future.
JanKowalski
Of course, Tesla shareholders have a right to worry about funds being diverted to Musk's other projects. 😕 After all, the company is in a difficult situation with falling sales and increasing competition. Musk needs to focus and not waste Tesla's resources.
ГрумпНедовольный
Again all these fancy things with artificial intelligence! 🙄 Musk, as always, is chasing new trends and throwing money left and right. Are simple cars of no interest to people? It's time for him to come back to reality and get on with his day job at Tesla!
MariaGarcia
I'm more concerned about Tesla's reputation and the stock's decline due to Musk's behavior. 😟 He pays too much attention to his loud statements and conflicts, forgetting about the company itself. This creates nervousness among investors and discourages potential buyers.
PiotrNowak
On the other hand, it cannot be denied that developments in the field of artificial intelligence open up enormous prospects. 🔭 If Musk can succeed in X and xAI, this could be a breakthrough for many industries, including the auto industry. But, of course, he should not do this to the detriment of Tesla's core business.
LucaBianchi
To me, Musk is simply bad at dividing his time and effort between so many companies. 😩 He gets too carried away with new ideas and forgets about current problems. Instead of rushing into new projects, he should focus on strengthening Tesla's position in a falling market.