Elon Musk goals to make X (previously Twitter) a key participant within the AI race, whereas he seeks to combine extra AI components into Tesla to realign each corporations round advancing know-how.
And that, it appears, is resulting in battle, which may increase issues amongst Tesla traders.
In response to a brand new report from CNBC, Musk lately transferred almost $500 million price of AI {hardware} from Tesla to X, as he desires to provide X a lift in its AI plans.
In response to CNBC:
“On Tesla First quarter earnings name in April, Musk mentioned [Tesla] The energetic H100s will improve Nvidia’s flagship synthetic intelligence chip depend from 35,000 to 85,000 by the tip of this yr. he too wrote A publish on X just a few days later mentioned Tesla would spend “a mixed $10 billion on mixed coaching and inference AI” this yr, however emails written by senior Nvidia workers and extensively shared inside the corporate counsel that Musk is an exaggerated image of what Tesla is elevating for shareholders. introduced. Correspondence from Nvidia workers additionally signifies that Musk has diverted a big cargo of AI processors reserved for Tesla to his social media firm X, previously often known as Twitter.“
In response to Nvidia workers, Musk has not ordered anyplace close to that variety of H100 chips, that are a part of the “further view,” whereas Musk lately diverted lots of these chips to X to assist energy his xAI tasks, together with Grok, its AI chatbot.
In response, Musk defined that the costly {hardware} was sitting dormant till Tesla’s Giga Texas growth was accomplished, which has confronted varied delays. As such, transferring models to X is a short lived answer to make sure they’re maximizing their use, advancing each tasks, however not on the expense of 1 or the opposite.
Kasturi didn’t touch upon the word saying he overstated Tesla’s {hardware} procurement plans.
Musk’s clarification is smart that it is higher to make use of the chips than look forward to Tesla’s system to be prepared. However on the similar time, it highlights a battle of curiosity between the 2 corporations, which may grow to be problematic, as they each need to push additional into AI.
But, on the similar time, it is going to give xAI a big increase, which it is going to seemingly want if it desires to maintain up with better-resourced rivals within the AI race.
For context, Meta is claimed to be seeking to make an acquisition Greater than 350,000 further Nvidia H100 GPUs By the tip of this yr, each the X and Tesla’s capability plans will likely be dwarfed.
The query then is whether or not xAI is ready to sustain that velocity as Tesla reclaims this {hardware} in some unspecified time in the future. Possibly, it is potential that each corporations may use the identical {hardware} stack, at the very least to some extent, however this, once more, results in a battle between the 2 that would finally price Musk massive enterprise to Tesla.
I do not declare to grasp the nuances of AI {hardware} and precisely the way it might or might not work. Nevertheless it seems like X is seeking to piggyback on Tesla to spice up its AI capabilities, and that would result in extra challenges in operations, as each look to department out additional into the most recent know-how.
In any case, it seems like xAI goes to get at the very least a short lived increase, which could possibly be essential if it desires to maintain up with the competitors.
