Chipmaker Nvidia finds itself in a complex situation after Tesla CEO Elon Musk reportedly requested prioritizing deliveries of their most advanced AI processors, the H100 GPUs, to his other ventures, X and xAI.
This move puts Nvidia in a delicate spot, delaying Tesla's access to over $500 million worth of crucial hardware by several months.
Internal Nvidia emails obtained by CNBC reveal Musk's request to prioritize X and xAI for H100 chip deployment. While Tesla's original orders would be fulfilled later, the delay could potentially impact their development timelines in autonomous driving and humanoid robotics.
This decision raises questions for both companies. Tesla faces criticism for potentially hindering its core technologies during a challenging market period, while Nvidia might face scrutiny for prioritizing Musk's other ventures.
Both Tesla and Nvidia have yet to comment on the reported email exchange. This situation highlights the complex business relationships and strategic priorities within the AI and electric vehicle industries.
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