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Tesla likely to spend $3 billion-$4 billion on Nvidia hardware this year

Published 06/04/2024, 02:28 PM
Updated 06/04/2024, 02:52 PM
© Reuters. An Nvidia Blackwell GPU is displayed at COMPUTEX in Taipei, Taiwan June 4, 2024. REUTERS/Ann Wang
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(Reuters) -Tesla will likely spend between $3 billion and $4 billion on its purchases of chip company Nvidia (NASDAQ:NVDA)'s hardware this year, CEO Elon Musk said in a post on X on Tuesday.

Musk also said that out of the $10 billion in artificial intelligence-related capital expenditure this year, around half would be internal spend.

"For building the AI training superclusters, NVidia (sic) hardware is about 2/3 of the cost," he said on X.

Earlier on Tuesday, Tesla (NASDAQ:TSLA) reportedly told Nvidia to prioritize shipments of AI processors to his companies X and xAI over the electric-vehicle maker.

© Reuters. An Nvidia Blackwell GPU is displayed at COMPUTEX in Taipei, Taiwan June 4, 2024. REUTERS/Ann Wang

The development also comes ahead of a crucial shareholder vote on his pay package at Tesla.

Tesla in April reiterated its capital expenditure forecast of more than $10 billion this year and said it had expected capex to be between $8 billion and $10 billion in each of the following years.

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