Elon Musk Reveals How Tesla May Split $10B AI Budget: Nvidia To Get Billions, But In-House Efforts Take Center Stage
Portfolio Pulse from Anan Ashraf
Tesla Inc. (NASDAQ:TSLA) will allocate $3-$4 billion of its $10 billion AI budget to Nvidia Corp. (NASDAQ:NVDA) for hardware purchases, with the rest spent internally on AI inference computers, sensors, and the Dojo supercomputer. Elon Musk clarified that the decision to redirect 12,000 Nvidia H100 chips to his other companies was due to space constraints at Tesla.
June 05, 2024 | 7:15 am
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POSITIVE IMPACT
Nvidia will receive $3-$4 billion from Tesla for hardware purchases, a significant portion of Tesla's $10 billion AI budget.
Nvidia's receipt of $3-$4 billion from Tesla for hardware purchases is a substantial revenue boost, likely to positively impact its stock price in the short term.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100
POSITIVE IMPACT
Tesla will spend $3-$4 billion on Nvidia hardware and the rest of its $10 billion AI budget on internal projects, including AI inference computers, sensors, and the Dojo supercomputer.
Tesla's significant investment in AI and hardware indicates a strong commitment to advancing its technology, which is likely to positively impact its stock price in the short term.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100