Musk Responds to Claims of Prioritizing X and xAI Over Tesla After Diverting Nvidia AI Chips – Blockonomi


TLDR

Recent
reports
suggest
that
Tesla
CEO
Elon
Musk
instructed
Nvidia
to
prioritize
shipments
of
AI
chips
to
his
social
media
company
X
and
AI
startup
xAI
over
the
electric
vehicle
manufacturer.

Emails
from
Nvidia
staff,
obtained
by
CNBC,
indicate
that
Musk
diverted
12,000
H100
GPUs
originally
slated
for
Tesla
to
X,
pushing
back
the
automaker’s
receipt
of
over
$500
million
in
processors
by
months.

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The
decision
has
raised
concerns
among
some
Tesla
shareholders,
who
question
whether
Musk
is
fulfilling
his
obligations
to
the
company
while
also
running
several
other
ventures
that
require
significant
attention
and
resources.

Critics
argue
that
Musk
is
only
a
part-time
CEO
of
Tesla,
the
company
responsible
for
the
majority
of
his
wealth,
as
he
also
manages
SpaceX,
Neuralink,
The
Boring
Company,
and
the
recently
acquired
X
(formerly
Twitter).

Musk
has
been
encouraging
Tesla
investors
to
focus
on
future
products,
such
as
AI
software
for
self-driving
vehicles,
dedicated
robotaxis,
and
a
driverless
transportation
network.

He
has
emphasized
the
importance
of
Nvidia’s
GPUs
in
achieving
these
goals,
stating
that
Tesla
will
increase
the
number
of
active
H100s
from
35,000
to
85,000
by
the
end
of
the
year.
However,
the
Nvidia
emails
suggest
that
Musk
may
have
exaggerated
Tesla’s
procurement
plans
to
shareholders.

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In
response
to
the
reports,
Musk
took
to
X
to
clarify
the
situation.
He
stated
that
Tesla
had
no
place
to
put
the
Nvidia
chips
where
they
could
be
turned
on
and
that
they
would
have
sat
idle
in
a
warehouse.

Musk
added
that
the
south
extension
of
Tesla’s
Texas
Gigafactory
is
near
completion
and
will
house
50,000
H100s
for
self-driving
technology
training.

Despite
Musk’s
explanation,
the
reports
have
exacerbated
tensions
between
the
billionaire
entrepreneur
and
some
Tesla
investors.

The
company’s
stock
price
has
dropped
nearly
30%
this
year,
as
it
faces
a
sales
decline
due
to
aging
electric
vehicle
lineups
and
increased
competition.

Some
shareholders
have
expressed
concern
over
Musk’s
ability
to
manage
his
various
companies
effectively
while
ensuring
Tesla
remains
a
leader
in
the
electric
vehicle
and
AI
markets.

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Musk’s
other
ventures,
particularly
xAI
and
Neuralink,
are
competing
in
the
rapidly
evolving
AI
and
brain-to-computer
interface
sectors.

xAI
recently
introduced
the
Grok
chatbot
as
a
“non-woke”
alternative
to
OpenAI’s
ChatGPT,
while
Neuralink
has
received
FDA
approval
to
begin
human
trials
for
its
brain-to-computer
interface
technology.

Go to Source
Author: Oliver Dale


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