Tesla and xAI Forge Ahead with Strategic GPU Partnerships to Accelerate AI Innovation
Elon Musk reveals plans for Tesla and xAI to maintain strong collaborations with leading GPU providers Nvidia and AMD, fueling advancements in AI and robotics with cutting-edge chip technology.
Highlights
- Elon Musk confirms Tesla and xAI will keep sourcing GPUs from Nvidia and AMD to power AI development.
- xAI is set to establish a massive GPU center near Memphis, housing 1 million graphics processors.
- Tesla’s Optimus humanoid robot project demands significant GPU resources for training and development.
During a recent interview with CNBC, Elon Musk shared that Tesla and xAI plan to continue procuring advanced chips from top manufacturers Nvidia and Advanced Micro Devices (AMD). This ongoing partnership underscores their commitment to leveraging the most powerful GPU technology available to push the boundaries of artificial intelligence and robotics.
xAI, the AI startup behind the Grok language model, is preparing to build a state-of-the-art facility near Memphis designed to accommodate 1 million GPUs. Musk also noted that Tesla’s parent company has already deployed 200,000 GPUs in an existing Memphis location, highlighting the scale of their AI infrastructure investment.
For Tesla’s ambitious Optimus humanoid robot project, a substantial number of GPUs are essential to effectively train the AI systems. Musk emphasized, “We anticipate continuing to purchase a large volume of GPUs from Nvidia, some from AMD, and potentially other suppliers. As long as Nvidia’s technology outperforms our in-house solutions, we will keep relying on their products.”
Nvidia’s shares recently surged following a major agreement to supply chips to Saudi Arabia’s AI startup Humain, with the company set to announce earnings soon. Meanwhile, AMD and Tesla stocks also experienced gains amid excitement over expanding AI partnerships stemming from recent diplomatic engagements in the Middle East.
In a separate address at the Qatar Economic Forum, Musk reaffirmed his dedication to leading Tesla as CEO for at least the next five years, signaling stability and continued innovation at the electric vehicle giant.
Following the announcements, Tesla’s stock saw a modest increase, while AMD and Nvidia experienced slight declines in after-hours trading. These movements reflect investor anticipation as AI advancements continue to shape the future of technology.
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