Elon Musk has reportedly transferred thousands of AI chips from Tesla to X

Elon Musk ordered the transfer of thousands of artificial intelligence chips made by Nvidia and intended for Tesla to his social networking company X, According to emails from the chip maker obtained by CNBC. Reports indicate that the move has the potential to delay Tesla’s acquisition of $500 million worth of processors by several months.

Tesla is supposed to stock Nvidia’s H100 AI chips in order to further its transformation into a “leader in AI and robotics,” according to Musk. On Tesla’s earnings call earlier this year, he said the company would increase its acquisition of H100s from 35,000 to 85,000 by the end of this year. And later, In a post on XMusk said Tesla will spend $10 billion “on joint training and AI inference, the latter primarily in the car.”

But emails sent by Nvidia employees and obtained by CNBC indicate that Musk is exaggerating his purchase of Tesla’s AI chips. Instead, many of these processors are now on their way to X – primarily its AI subsidiary xAI.

“Elon is prioritizing deployment of “In return, the original 12,000 H100 orders scheduled for January and June will be redirected to Tesla.” In follow-up messages, Nvidia employees noted that Musk’s comments during the earnings call and in subsequent posts on

The move to turn Tesla’s AI chips into X could anger Tesla investors, who are betting that Musk is making good on his promise of fully self-driving vehicles. The company plans to unveil its first automated taxi at an event to be held in August. Meanwhile, Tesla’s Autopilot and Full Self-Driving driver-assistance features, which serve as the cornerstone of the company’s self-driving work, have come under scrutiny due to hundreds of crashes, dozens of which resulted in fatalities.

Musk’s AI startup, xAI, is competing with OpenAI, Google and others to produce useful applications of generative AI and their underlying large language models. Last month, the company announced a $6 billion funding round on the promise of advanced products and the infrastructure to support them.

Nvidia has become the third most valuable company in the world based on demand for its graphics processing units, which underpin much of other companies’ AI ambitions. With cloud computing and generative AI, customers are consuming every GPU in existence, Nvidia CEO Jensen Huang said on an earnings call in May, according to CNBC. The company reported 200 percent revenue growth during the most recent quarter.