Elon Musk Clarifies Nvidia AI Chip Shipments

Elon Musk, the renowned billionaire and industrialist, has taken a strong stance against allegations made in a CNBC article dated June 4. The report suggested that Musk had directed Nvidia to allocate artificial intelligence chips, originally intended for Tesla, to his private social media venture, X. CNBC claimed to have obtained emails from Nvidia indicating that Musk requested the diversion of 12,000 Nvidia H100 chips from Tesla to X. In response, Musk firmly denied these claims through several posts on social media, emphasizing that the chips were not needed by Tesla at the time and would have simply gone unused in storage.

Musk also provided some context about the current developments at Tesla, mentioning the near completion of the south extension at the Giga Texas factory. According to him, this new facility will have the capacity to house 50,000 H100 chips for Full Self-Driving (FSD) training. Following this clarification, Musk publicly labeled the author of the CNBC article a “liar,” further intensifying the situation.

The repercussions of the CNBC article were immediately felt in the stock market. The early trading session on June 4 saw Tesla shares dip by 1%. CNBC also reported that the release of Nvidia’s emails heightened the existing friction between Musk and some Tesla investors. These investors are concerned about potential conflicts of interest, given Musk’s involvement in numerous ventures, and worry that he may be spreading himself too thin.

Elon Musk’s portfolio spans multiple high-tech companies, both public and private. Alongside Tesla, he manages SpaceX, Neuralink, xAI, and X, which was previously known as Twitter. This vast array of responsibilities places Musk at the center of some of the most cutting-edge advancements in technology today.

Musk has also positioned himself as a key player in the artificial intelligence and brain-to-computer interface sectors. Companies like xAI and Neuralink represent direct competitors to industry giants such as OpenAI and Google. In 2023, X launched the Grok chatbot, marketed as a “non-woke” alternative to OpenAI’s ChatGPT. The large language model chatbot soon became accessible to all subscribers of the X social media platform.

Neuralink, another of Musk’s ambitious ventures, gained approval from the U.S. Federal Drug Administration to start human trials. This marked a significant milestone for the company, which aims to revolutionize brain-to-computer interfaces. In February, Neuralink successfully implanted its technology into the first human test subject, who was then able to control a computer mouse using only thought.

These ventures underscore Musk’s dedication to pushing the boundaries of technology. They also contribute to the scrutiny he faces, particularly from those who believe his involvement in multiple companies may dilute his effectiveness. The recent controversy regarding Nvidia’s AI chips and the subsequent dip in Tesla’s stock further exemplify the precarious balancing act Musk must maintain.

Despite the turbulence, Musk’s vision for the future remains undeterred. His comment about the upcoming capacity for H100 chips at the Giga Texas factory highlights his ongoing commitment to advancing Tesla’s AI capabilities. As these developments unfold, stakeholders and market observers alike continue to watch closely, given the significant impact of Musk’s decisions on the tech landscape.