Tesla Set to Invest US$3-4 Billion in Nvidia Hardware This Year

Tesla is expected to spend US$3-4 billion on Nvidia hardware this year. Approximately half of the US$10 billion planned for AI-related capital investment will be spent internally. Nvidia hardware accounts for around two-thirds of the cost of developing AI training superclusters.

tech360.tv

In a recent post on X, Musk also disclosed that out of the U$10 billion allocated for artificial intelligence (AI)-related capital expenditure, approximately half will be dedicated to internal spending.

Musk emphasised the significance of Nvidia's hardware in the development of AI training superclusters, stating that it accounts for about two-thirds of the total cost. This news comes after Tesla reportedly urged Nvidia to prioritise AI processor shipments to its subsidiaries, X and xAI, over the electric vehicle maker.

The timing of this announcement is especially notable, given Tesla is currently facing a critical shareholder vote on Musk's compensation plan.

Tesla has confirmed its capital expenditure target of more than $10 billion for this year, with similar levels expected in subsequent years.

---

• Tesla is projected to spend $3-4 billion on Nvidia hardware purchases this year.

• Approximately half of the $10 billion allocated for AI-related capital expenditure will be used for internal spending.

• Nvidia's hardware accounts for about two-thirds of the cost in building AI training superclusters.

Source: REUTERS