Tesla AI delayed as Elon Musk prioritises xAI

Tesla AI delayed

Tesla AI delayed as Elon Musk prioritises xAI

In a recent development , Elon Musk ,CEO of Tesla and xAI , has redirected thousands of Nvidia GPUs towards xAI , the AI startup from Elon. These Nvidia GPUs were initially intended for Tesla and were supposed to boost the development of Tesla AI and their autonomous driving projects. This redirection of Nvidia GPUs from Tesla to xAI has delayed Tesla AI and raised concerns among Tesla stakeholders, who seem to be quite worried about Musk’s involvement in multiple ventures.

How is Tesla AI going to be affected?

Tesla is reportedly working on its various projects, like the Tesla Bot , autonomous algorithms, etc. And for all these projects to work seamlessly, they need their Tesla AI. For these developments, only Tesla had ordered 12,000 H100 GPUs worth over $500 million. These orders were part of Tesla’s plan to increase their GPU count from 35,000 to 85,000 by the end of 2023. But the recent orders from Elon Musk have delayed the project by several years. This delay is expected to cost Tesla millions of dollars as they will be left behind by various automakers as Tesla is facing cutthroat competition from various Chinese companies like BYD.

Also Read : Tesla buying GPUs double handedly from both Nvidia and AMD.

How will xAI benefit from this move?

Having secured $6 billion from investors , xAI is in a hurry to fulfil its promise of competing against giants like Google and Microsoft backed OpenAI with its AI model, Grok. Having received so many of Nvidia’s H100GPUs , it will help Elon Musk backed xAI train their AI model “Grok” faster. Thus positioning itself better in the generative AI space. Also, these 12,0000 Nvidia’s H100 GPUs will help further cement Elon’s plan to build the world’s largest GPU cluster in North Dakota.

Also Read : Nvidia to Buy Intel?


Elon has got himself trapped in so many companies that it has become a problem for the investors and stake holders. It will be interesting to see How Tesla continues its job on Tesla AI and how they will be able to continue their autonomous driving projects.


1)How many Nvidia GPU’s has been redirected?

There is no evidence regarding how many GPUs has been re directed but it seems that all the 12,000 Nvidia H100 GPUs that were intended for Tesla has been diverted .

2)Worth how much GPU’s has been diverted?

GPUs worth over $500 million has been diverted.

3)Which Nvidia GPU cluster has been diverted?

Nvidia H100 GPU clusters has been diverted.



Abhinav is a graduate from NIT Jamshedpur . He is an electrical engineer by profession and analog engineer by passion . His articles at WireUnwired is just a part of him following his passion.

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