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Musk reportedly shifted AI chip shipments from Tesla to xAI according to internal NVIDIA emails

The AI chips had been previously reserved for EV manufacturer Tesla.

Donovan Erskine

June 5, 2024 7:20 AM

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Elon Musk’s X (formerly known as Twitter) has implemented AI technology in the form of a chat bot and trending topic aggregate. Last year, Musk also launched xAI, a new company to compete with the likes of OpenAI. It appears that the multi-billionaire may have been prioritizing these newer ventures over Tesla, as a new report alleges he ordered NVIDIA to redirect the shipment of AI chips from Tesla to xAI.

Internal NVIDIA emails obtained by CNBC apparently reveal that Elon Musk told the tech company to reroute AI chips from Tesla to his new venture, xAI. The chips were previously reserved for Tesla, Musk’s leading EV company. The alleged move led to a delay in $500 million worth of AI chips to Tesla. Musk addressed the article in a Tweet.

NVIDIA’s AI chips have been the hottest commodity in the tech industry this year, sending the company’s stock skyrocketing as the biggest companies on earth seek to establish their position in the growing AI market. We’ll continue to cover how AI is shaping the tech industry here on Shacknews.

Donovan Erskine

News Editor

Donovan is a young journalist from Maryland, who likes to game. His oldest gaming memory is playing Pajama Sam on his mom's desktop during weekends. Pokémon Emerald, Halo 2, and the original Star Wars Battlefront 2 were some of the most influential titles in awakening his love for video games. After interning for Shacknews throughout college, Donovan graduated from Bowie State University in 2020 with a major in broadcast journalism and joined the team full-time. He is a huge Scream nerd and film fanatic that will talk with you about movies and games all day. You can follow him on twitter @Donimals_