Musk Ships Tesla Chips to X Instead
Musk Ships Tesla Chips to X Instead
Recently, Elon Musk made the decision to reroute a shipment of NVIDIA chips intended to power Tesla AI to the newly-created X AI startup. This blog discusses the news.
X Jumps the Line
While Tesla requires considerable stockpiles of NVIDIA chips, especially H100s in order to power its production of autonomous robots and cars, Musk chose to delay shipments of those critical chips to supply them for the X AI project.
X AI is Musk’s attempt to enter the generative AI market via his acquisition of Twitter and its subsequent rebrand. It already features a virtual assistant, Grok, which has been met with a mixed reception. No doubt these chips will be used to continue training Grok-style models and attempting to integrate generative AI services into Musk’s platform.
Tesla and the Limits of Chip Production
This story casts into light the tight and limited window of availability for high-throughput AI chips in today’s market. While we are not facing the same extreme chip shortages of a few years back, the limitations of production mean that Musk was likely making a choice of what to prioritize based on the capacity available.
Nevertheless, some Tesla shareholders were not pleased, with some reportedly questioning whether Musk was fully invested in the capacity needed to build out Tesla’s autonomous driving technology in the timeframe that had been set forth.
Bottom Line
News about Musk’s choice suggests that the market for chip delivery is still tight and poses challenges for AI providers seeking scale. It also suggests, perhaps, that the growing generative AI market may be a more lucrative investment area than the computer vision focus of Tesla AI in the near term.
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