Chip Redirection from Tesla to X and xAI In a strategic move, Elon Musk directed Nvidia to redirect a shipment of approximately 12,000 H100 AI chips, originally intended for Tesla, to his social media platform X and his new AI company xAI in late 2023. According to internal Nvidia memos obtained by CNBC, this redirection of chips slated for Tesla's Full Self-Driving (FSD) development prioritized building an AI cluster for X, a crucial component of Musk's social media platform, over Tesla. In exchange, a subsequent order of 12,000 H100 chips, initially for X, was redirected to Tesla. Musk's Explanation Musk confirmed the chip redirection on X, stating that Tesla did not have enough physical space to store and utilize the Nvidia chips. He reassured that the extension to Tesla's Gigafactory in Austin, Texas, is nearing completion and will house around 50,000 H100 chips for FSD training. Musk also claimed his previous statements about Tesla investing $ 10 billion in AI ...
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