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Musk Orders Nvidia Ship Tesla AI Chips to X And xAI

CNBC reported Tuesday that Tesla CEO Elon Musk urged Nvidia to prioritize AI processor shipments to X and xAI above the electric-vehicle maker

According to a December Nvidia internal memo, CNBC reported,

“Elon prioritized X H100 GPU cluster deployment at X over Tesla by redirecting 12,000 H100 GPUs originally scheduled for Tesla to X instead.”

“In exchange, original X orders of 12K H100 slated for Jan and June will be redirected to Tesla,” according to the document.

According to CNBC, the modification will cause a several-month delay in Tesla’s receipt of over $500 million worth of processors.

Musk announced earlier this year that Tesla would purchase more H100s, the most sophisticated AI processors made by Nvidia, and spend $10 billion “in combined training and inference AI” this year.

In April, Tesla, embroiled in a downturn in the electric vehicle (EV) market, announced the global layoff of over 10% of its workforce.

Caleb Ogwuche

Caleb, a graduate in Biological Science, serves as a DevOps Engineer. He expertly leverages his scientific knowledge and technical prowess to deliver insightful tech content on protechbro.com.

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