Tesla Will Invest Up To $4 Bn In Nvidia Hardware: Musk

Tesla CEO Elon Musk revealed that the company is poised to invest between USD 3 billion and USD 4 billion this year on hardware from Nvidia. 

This investment will be part of Tesla’s broader strategy to support its artificial intelligence capabilities. Musk shared this information on X, stressing the crucial role Nvidia’s technology will play in Tesla’s AI training superclusters.

Tesla’s overall capital expenditure related to artificial intelligence is projected to reach around USD 10 billion in 2024. Approximately half of this amount will be dedicated to internal projects. 

Musk further said that Nvidia hardware will account for about two-thirds of the costs associated with building these advanced AI training clusters, underscoring the importance of Nvidia’s processors in Tesla's AI infrastructure.

Moreover, Tesla has reportedly requested Nvidia to prioritise the shipment of AI processors to Musk’s other ventures, including the social media platform X and the AI research company xAI, over the needs of Tesla’s electric vehicle division. 

This development comes at a critical juncture as Tesla prepares for a significant shareholder vote regarding Musk’s compensation package. It also aligns with Tesla’s reiterated forecast of capital expenditures exceeding USD 10 billion this year, with anticipated spending between USD 8 billion and USD 10 billion in each of the following years. 

(Inputs from Reuters)