Tesla ordered Nvidia to divert shipped AI chips from Tesla to X, xAI - CNBC

Investing.com -- Tesla Chief Executive Elon Musk ordered Nvidia (NASDAQ:NVDA) to redirect chips intended for the electric vehicle giant to his social media company X and his artificial intelligence start-up xAI, according to CNBC.

The chips were slated to help Tesla (NASDAQ:TSLA) evolve into a stronger player in AI and robotics. However, the diversion could potentially delay Tesla's acquisition of processors worth $500 million by months, CNBC said.

Citing internal emails circulated among Nvidia's senior staff, the business news channel also said Musk's prediction earlier this year that Tesla will expand its procurement of Nvidia's active H100s to 85,000 from 35,000 "conflicts with bookings" data. H100s are the flagship AI-optimized chip made by Nvidia, the California-based group that has become a focal point of a boom in enthusiasm over the nascent technology.

Musk later said on X that Tesla would spend $10 billion in 2024 on "training and inference AI." But Nvidia staff noted a "conflict" in this statement with both bookings and fiscal year 2025 financial forecasts as well, CNBC reported.

Oliver Gray contributed to this report.

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