Tesla CEO Elon Musk said on X on Tuesday that EV carmaker will probably spend between $3 billion and $4 billion on Nvidia hardware this year. Out of the $10 billion the company expects to spend on artificial intelligence-related capital expenditure in 2024, about half would be internal spend, Musk added.
However, earlier on Tuesday, Musk reportedly directed Nvidia to prioritize AI processor shipments to X and xAI over those to Tesla, indicating that he’s giving preference to AI development outside of the EV maker. This has raised concerns from shareholders about Musk’s commitment to Tesla while running so many other businesses.
Musk responded via an X post that Tesla didn’t have storage space for the Nvidia processors, but the expansion of its Giga factory in Texas would solve the issue. “This will house 50k H100s for FSD (full self-driving) training,” he said.
