Elon Musk Asks Nvidia To Prioritize Delivery Of AI Chips To X And XAI Than Tesla

JAKARTA - Tesla CEO Elon Musk asked Nvidia to prioritize sending AI processors to its companies X and xAI rather than Tesla. This was reported by CNBC on Tuesday, June 4.

Nvidia's internal memo from December showed the priority shift. "Elon prioritized the use of the GPU X H100 cluster on X rather than Tesla by diverting 12,000 H100 GPUs which were originally sent to Tesla to X.

"Instead, the initial X order for 12,000 H100s scheduled for January and June will be transferred to Tesla," according to the memo.

According to CNBC, Nvida is now delaying Tesla's acceptance of a processor worth more than $500 million for several months.

Earlier this year, Musk said Tesla would increase the amount of H100 - Nvidia's most advanced AI processor - which they have used and will spend $10 billion this year "for joint AI training and inference".

Tesla is battling a slowdown in the electric vehicle market and announced its layoffs of more than 10% of its staff globally in April.