Elon Musk Sparks Controversy By Diverting Nvidia Chips From Tesla To X And xAI

In a move that has stirred up discussions across the tech and automotive industries, Elon Musk, the visionary entrepreneur behind Tesla, has recently made headlines for redirecting a significant shipment of Nvidia chips originally intended for Tesla to his ventures X (formerly known as Twitter) and xAI. This decision, as reported by CNBC, has shifted the focus from Tesla's ambitious plans for autonomous vehicles and humanoid robots to Musk's ventures in the social media and artificial intelligence sectors.

The redirected shipment, valued at over $500 million, was part of Tesla's extensive investment in Nvidia's flagship H100 AI chip. The electric vehicle (EV) company had plans to increase the number of active H100s from 35,000 to 85,000 by the end of the year, a move that would have significantly advanced Tesla's AI capabilities, particularly in the development of Full Self-Driving (FSD) technology.

However, Musk's decision to reroute these chips has raised questions about his commitment to Tesla's original mission and the company's shareholders. The diversion has not only delayed Tesla's progress in AI and robotics but also led to internal conflicts within the company. According to internal Nvidia emails seen by CNBC, Musk's actions have been met with skepticism and concern, especially given his ambitious spending plans in the AI sector.

Musk, in response to the controversy, stated that Tesla had no place to turn the Nvidia chips on, suggesting that the company was not yet ready to deploy the AI hardware. He also hinted at a larger plan to build a massive GPU cluster for xAI, which he hopes to establish as a leader in generative AI, competing with the likes of OpenAI, Anthropic, and Google.

This move comes at a time when Tesla is facing increasing competition in the EV market and is under pressure to deliver on its promises regarding autonomous driving technology. While Musk has been vocal about his vision for Tesla to lead in AI and robotics, his recent actions have led some to question his priorities and the future direction of the company.

As the debate continues, the tech community and Tesla shareholders alike are closely watching to see how this shift in focus will impact Tesla's long-term goals and its standing in the highly competitive AI and automotive markets.

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Travis

contributor

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