Tesla expected to buy $3-4 billion in hardware for chips this year

Elon Musk, the Chief Executive Officer (CEO) of the US electric vehicle manufacturer Tesla, reported that they estimate that the company will spend between 3 to 4 billion dollars on hardware purchases from chip manufacturer Nvidia

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Newstimehub

5 Jun, 2024

Elon Musk, the Chief Executive Officer (CEO) of the US electric vehicle manufacturer Tesla, reported that they estimate that the company will spend between 3 to 4 billion dollars on hardware purchases from chip manufacturer Nvidia.

In a post on his X account, Musk noted that about half of the 10 billion dollars Tesla will spend on artificial intelligence this year will be in-house.

Tesla CEO Musk said, “Right now my best estimate for Tesla’s purchases from Nvidia this year is between 3 and 4 billion dollars.”

In the news in the US press today, it was reported that Musk told Nvidia to prioritize X and artificial intelligence company xAI instead of Tesla in the shipment of chips.

Musk, who also shared this on his X account, said, “Tesla had no place to ship and run Nvidia chips, so they would just be in a warehouse.”

Pointing out that the expansion of the Tesla giga factory in Texas is almost complete, Musk stated that the factory will host 50 thousand Nvidia chips H100 for full autonomous driving training.