Nvidia was supposedly given instructions by Elon Musk to ship thousands of AI processors meant for Tesla to X and xAI

Elon Musk asserts that he can make Tesla "a leader in AI & robotics," a goal he says will necessitate purchasing a large number of expensive Nvidia processors to strengthen its infrastructure.

During Tesla's first-quarter earnings call in April, Elon Musk announced that by the end of the year, the electric car manufacturer will have 85,000 H100s, the company's primary artificial intelligence processor from Nvidia, in use instead of just 35,000. A few days later, he added that Tesla will invest $10 billion this year "in combined training and inference AI" in a post on X.

However, emails from top Nvidia employees that have been extensively circulated inside the organisation imply that Musk gave investors a distorted impression of Tesla's acquisition. Employee correspondence from Nvidia further suggests that Musk transferred a substantial shipment of AI chips intended for Tesla to his social media business X, which was formerly known as Twitter.

Musk delayed the automaker's receipt of more than $500 million in graphics processing units, or GPUs, by months by directing Nvidia to allow privately held X to jump the queue ahead of Tesla. This move is likely to exacerbate delays in the setup of the supercomputers Tesla claims it needs to develop driverless cars and humanoid robots.

The latest information from the emails, which CNBC obtained, reveals a growing dispute between Musk and certain irate Tesla shareholders who wonder how the billionaire CEO is managing a number of other businesses that demand his time, energy, and substantial financial resources in addition to his duties to Tesla.

According to his critics, Musk is merely a part-time CEO of Tesla, the business that generates the great bulk of his riches. In addition, Musk founded the brain-computer interface firm Neuralink, the tunneling company The Boring Co., and the aircraft company SpaceX. In late 2022, while X was still known as Twitter, he purchased it for $44 billion. In 2023, he founded the AI company xAI.

(Sources: cnbc.com)