CNBC reported on Tuesday that CEO Elon Musk has instructed Nvidia to prioritize shipments of AI processors to his firms X and xAI over the electric-vehicle maker.
According to CNBC, “Elon prioritizes X H100 GPU cluster deployment at X versus Tesla by redirecting 12K of shipped H100 GPUs originally slated for Tesla to X instead,” according to an internal Nvidia memo dated December.
Image Courtesy/Tesla
“In exchange, original X orders of 12K H100 slated for Jan and June will be redirected to Tesla,” the note stated.
Tesla did not immediately respond to Reuters’ request for comment, and Nvidia declined to comment.
image credit: Nvidia Newsroom
According to CNBC, the adjustment will delay Tesla’s receipt of more than $500 million in processing by several months.
Earlier this year, Musk stated that Tesla will increase the number of H100s—Nvidia’s most sophisticated AI processors—deployed and will spend $10 billion this year “in combined training and inference AI.”.
Tesla has been dealing with a slowdown in the EV industry and announced layoffs of more than 10% of its workforce globally in April.
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