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Elon Musk Sending Tesla Chips to X and Xai · Elon Musk Podcast

• 0:01
  Hey everybody, welcome back to the Elon Musk Podcast.
• 0:05
  This is a show where we discuss. The Critical.
• 0:07
  Crossroads that shape SpaceX, Tesla X The Boring Company.
• 0:12
  And Neuralink. I'm your host, Will.
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  Walden Tesla CEO Elon Musk has confirmed that the company plans
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  to spend between 3 billion and four billion on NVIDIA AI chips
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  this year. This revelation came on Tuesday
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  when Musk addressed the reallocation of NVIDIA H 100
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  Graphics Processing units GPUs originally intended for Tesla,
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  to his other ventures, X&XAI. According to CNBC, Musk diverted
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  approximately 12,000 NVIDIA H100 GPUs from Tesla to these other
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  companies. This shift was confirmed by Musk
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  in a post on X, where he stated that Tesla had no immediate use
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  for the chips which would have otherwise remained in storage.
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  The GPU's are integral to Tesla's ambitions in developing
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  its self driving technology. Tesla is constructing a
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  substantial supercomputing infrastructure to support this,
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  with the Giga, Texas facility nearing completion and slated to
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  house 50,000 H 100 GP US dedicated to full self driving
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  FSD training. Musk's actions have sparked
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  discussions among shareholders and analysts about the potential
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  delays this could cause for Tesla's supercomputing projects.
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  This reallocation might lead to months long delays in setting up
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  the necessary infrastructure, a critical component for advancing
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  Tesla's AI capabilities. The delays could add fuel to
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  ongoing criticism from Tesla shareholders, who are concerned
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  about Musk's attention being divided across multiple
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  companies. These concerns come at a time
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  when shareholders are voting on Musk's $56 billion compensation
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  package at the upcoming annual meeting.
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  The financial markets reacted to the news, with Tesla's shares
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  dipping nearly 1% on Tuesday, reflecting broader investor
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  concerns. Meanwhile, Nvidia's stocks saw a
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  1.3% increase, continuing its upward trajectory with 135% gain
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  year to date in 2024, driven by high demand for its GPUs.
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  Despite the reallocations, Musk remains optimistic about Tesla's
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  chip procurement, estimating significant investments in
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  NVIDIA hardware. He has stated that Teslas AI
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  related expenditures for the year will total around $10
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  billion, with about half dedicated to the company's
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  internally designed AI systems and the Dojo supercomputer.
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  The Giga Texas facilities development is a focal point for
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  Tesla's future. Musk highlighted that the
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  supercomputing center will initially require around 130
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  megawatts of power and cooling, with plans to expand to over 500
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  megawatts within 18 months. The facility's infrastructure
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  includes massive cooling systems, underground water lines
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  and four large water tanks. Must confirm these developments
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  in a recent post on X, describing the centre as a super
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  dense water cooled supercomputer cluster.
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  The facility is expected to play a crucial role in enhancing
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  Tesla's self driving technology and AI capabilities.
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  The diversion of GP US to X has potential implications for
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  Tesla's timeline in achieving its AI goals.
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  Musk's statement on X explained that Tesla's Austin factory is
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  not yet ready to utilize the NVIDIA chips, justifying the
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  temporary reallocation to prevent the chips from sitting
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  idle. This decision may raise
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  questions among Tesla investors about Musk's focus and
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  priorities, especially given the company's ambitious targets for
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  autonomous driving technology. Tesla is set to unveil its first
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  robot taxi vehicle in August. Tesla's self driving technology,
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  particularly its Autopilot and Full Self driving features, has
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  faced scrutiny following multiple crashes and fatalities.
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  These incidents have put additional pressure on the
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  company to demonstrate progress and reliability in its
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  autonomous systems. Meanwhile, Musk's AI startup XAI
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  is positioning itself as a competitor to giants like Open
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  AI and Google. Last month, XAI announced a $6
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  billion funding round aimed at advancing its AI capabilities
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  and developing new applications for generative AI.
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  NVIDIA, a critical supplier in the AI industry, has seen
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  substantial growth, driven by the demand for its GPUs.
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  CEO Jensen Huang highlighted during a recent earnings call
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  that the company's products are in high demand, contributing to
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  a 200% increase in revenue last quarter.
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  Nvidia's success is tied to its ability to supply essential
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  hardware for AI advancements across various industries.
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  The company has become the third most valuable in the world,
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  reflecting its pivotal role in powering AI research and
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  applications. Musk's confirmation of Tesla's
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  substantial investment in NVIDIA chips underscores the ongoing
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  collaboration between the two companies.
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  This partnership is expected to bolster Tesla's efforts in AI
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  and autonomous driving. Despite the temporary
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  reallocation of resources, the developments at Tesla's Giga
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  Texas facility and the integration of NVIDIA hardware
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  are crucial for the company's future AI endeavors.
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  Elon Musk's strategic decisions regarding NVIDIA chips are
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  indicative of his broader vision for AI across his various
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  enterprises. While the immediate reallocation
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  may pose challenges for Tesla, the long term prospects for AI
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  advancements remain strong, driven by significant
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  investments and ongoing developments in supercomputing
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  capabilities. Hey, thank you so much for
• 6:08
  listening today. I really do appreciate your
• 6:10
  support. If you could take a second and
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  hit the subscribe or the follow button on whatever podcast
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  platform that you're listening on right now, I greatly
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  appreciate it. It helps out the show
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  tremendously and you'll never miss an episode.
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  And each episode is about 10 minutes or less to get you
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  caught up quickly. And please, if you want to
• 6:28
  support the show even more, go to patreon.com/stagezero.
• 6:34
  And please. Take care of yourselves and each
• 6:36
  other and I'll see you tomorrow.