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Elon Musk ordered Nvidia to ship thousands of AI chips reserved for Tesla to X and xAI
Emails circulated inside Nvidia show that Elon Musk was telling the chipmaker to prioritize shipments of GPUs to X and xAI ahead of Tesla.
On Tesla's first-quarter earnings call in April, Musk said the electric vehicle company will increase the number of active H100s — Nvidia's flagship artificial intelligence chip — from 35,000 to 85,000 by the end of this year. Between the cloud service providers and the companies developing AI models, customers "are consuming every GPU that's out there," Nvidia CEO Jensen Huang said on an earnings call in May, after the chipmaker reported its third straight quarter of more than 200% revenue growth. At xAI, which is racing to compete with OpenAI, Anthropic, Google and others in developing generative AI products, Musk is also seeking to build "the world's largest GPU cluster" in North Dakota, with some capacity online in June, according to an internal Nvidia email from February.
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