The AI chip manufacturer Nvidia had to use AI processors on behalf of Elon Musk Tesla were reserved, sent to the social media platform X and the AI start-up xAI. That reported CNBC.
Elon Musk had previously stated his intention to make Tesla a major player in the field of artificial intelligence. This would require huge investments in AI processors from Nvidia, the world leader in this field.
Tesla reportedly had to sell AI chips for over $500 million
An internal communication from Nvidia sent in December 2023, which is available to CNBC, suggests that Musk had AI processors originally intended for Tesla rerouted to speed up X’s equipment. This decision would have delayed Tesla’s delivery of AI chips worth more than $500 million (approximately €460 million) by months. This could delay the creation of the supercomputers that Musk says Tesla needs to develop autonomous vehicles and humanoid robots.
Tesla is affected by cheap Chinese electric car manufacturers
Tesla achieved a turnover of almost 97 billion dollars (89 billion euros) in 2023. Sales growth has been declining for months because Tesla is dependent on the cheaper Chinese Electric car-Manufacturing centers such as BYD and Nio are being harassed. That early Elon Musk several times to lower prices for Tesla vehicles.
Yet the group is struggling with overcapacity. That’s why Elon Musk wants to reduce the global workforce by ten percent. This also affects Tesla’s only European Gigafactory in Grünheide, Brandenburg. It currently employs approximately 12,500 people. has worldwide Tesla approximately 140,000 employees.
X’s business is also doing worse than Musk had hoped. The serial entrepreneur bought in 2023 Tweet for 44 billion dollars (over 40 billion euros) and renamed the service X. This is hurting sales of Musk’s social media platform.