Elon Musk ordered Nvidia to ship thousands of AI chips reserved for Tesla to X and xAI, causing a delay of over $500 million in processor receipts for the automaker. Musk's ambition to transform Tesla into a major player in artificial intelligence (AI) and robotics necessitates significant investment in Nvidia's AI processors. However, emails from Nvidia senior staff suggest that Musk may have exaggerated Tesla's procurement to shareholders. Furthermore, Musk diverted a substantial shipment of AI processors intended for Tesla to his social media company X, formerly known as Twitter.
Musk's comments on the first-quarter Tesla call "conflicts with bookings" and his April post on X about $10 billion in AI spending also "conflicts with bookings and FY 2025 forecasts." The decision to redirect the chips has raised concerns about Musk's priorities and potential conflicts of interest between his various companies.
Perspective
The comments section is filled with reactions ranging from shock and disbelief to criticism and concern. Many users are questioning Musk's priorities and the potential impact on Tesla's performance. Some are worried about the delay in Tesla's receipt of the AI chips and how it might affect the company's progress in autonomous vehicles and robotics. Others are criticizing Musk's management style and the potential conflicts of interest between his various companies.
Data
- Nvidia's Market Cap: Nvidia is now the third-most-valuable company in the world with a $2.8 trillion market cap, highlighting the significant demand for its AI processors.
- Tesla's Stock Performance: Tesla's stock price is down 29% this year, partly due to its aging lineup of electric vehicles and increased competition.
- AI Spending: Musk announced that Tesla would spend $10 billion on combined training and inference AI, indicating the company's significant investment in AI technology.
Original Article: https://www.cnbc.com/2024/06/04/elon-musk-told-nvidia-to-ship-ai-chips-reserved-for-tesla-to-x-xai.html
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