Varney & Co. host Stuart Varney discusses whether Elon Musk’s latest tech bet will pay off for investors.
Billionaire entrepreneur Elon Musk asks Nvidia to ship Artificial Intelligence (AI) CNBC reported on Tuesday that the chips destined for Tesla will be provided by social media platform X and AI startup xAI.
CNBC reported: The company reviewed an internal Nvidia memo dated December, which said, “Elon prioritized the deployment of H100 GPU clusters at X rather than Tesla by redirecting 12,000 of the shipped H100 GPUs originally intended for Tesla to X.”
“Instead, the original X orders for the 12K H100 scheduled for January and June will be forwarded to Tesla,” the memo continued. The change delayed Tesla’s receipt of more than $500 million in processors by several months, according to CNBC.
The media also reported that Musk’s comments about the company’s first-quarter results were sent via email in late April. Tesla’s Revenues There were calls that EV makers’ AI investments were “inconsistent with bookings,” and that X’s posting about $10 billion in AI spending that month was “inconsistent with bookings and fiscal 2025 forecasts.”
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Tesla CEO Elon Musk said the AI chip swap was because Tesla didn’t have the space to use them at the time. (Frederick J. Brown/AFP via Getty Images/Getty Images)
Tesla CEO Elon MuskThe CEO of xAI and chairman of the board of directors of X explained in a post on X (formerly Twitter) that the swap in AI chip shipments occurred because Tesla didn’t have a place to store and use Nvidia’s AI chips at the time.
“Tesla didn’t have anywhere to send Nvidia’s chips to power them up, so the chips would have just sat in a warehouse,” Musk wrote.
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Tesla CEO Elon Musk has slammed a Delaware court ruling that voided his compensation, and he and the company are asking shareholders to reinstate it later this month. (Michael M. Santiago/Getty Images/Getty Images)
He also said Tesla will soon use Nvidia’s AI chips to train its full self-driving (FSD) software. Gigafactory in Austin, Texas: “Giga Texas’ south expansion is nearly complete, which will house 50,000 H100s for FSD training.”
Musk then said that about half of the $10 billion Tesla expects to spend on AI will be internal, with the Nvidia purchase coming in at about $3 billion to $4 billion. He added, “I can’t stress enough how difficult it is to train 50,000 H100s as a coherent system. No company on the planet has been able to do that yet. Once we have this system up and running, we’ll be ordering more hardware.”
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| TSLA | Tesla Inc. | 174.77 | -1.52 | -0.86% |
Nvidia and Tesla did not immediately respond to requests for comment.
The report said Musk Tesla Leadership He is also involved with companies such as X and xAI.
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Elon Musk’s xAI recently announced $6 billion in new investment. (Apu Gomez/Getty Images | Omar Marquez/SOPA Images/LightRocket via Getty Images / Getty Images)
Musk previously said, Tesla’s AI Without increasing their control over the company’s shares.
“I am not comfortable growing Tesla into a leader in AI and robotics without having roughly 25% voting control…. unless that happens, I would rather develop products outside of Tesla,” Musk said in a January X post.
Tesla shareholders are scheduled to vote on June 13 on reinstating Musk’s $56 billion compensation package. voided by Delaware court This was considered the largest compensation package among the CEOs of publicly traded U.S. companies.
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The company is urging shareholders to vote in favor, but at least one Proxy Voting Advisory Firm He urged them to vote against it.
Shareholders are also considering a plan to change Musk’s state of domicile from Delaware to Texas, as prompted by the ruling.
Reuters contributed to this report.
