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Tesla likely to spend $4b to $5.4b on Nvidia hardware this year

Tesla likely to spend $4b to $5.4b on Nvidia hardware this year
An Nvidia Blackwell GPU is displayed at COMPUTEX in Taipei, Taiwan, on June 4, 2024.
PHOTO: Reuters

Tesla will likely spend between US$3 billion (S$4 billion) and US$4 billion (S$5.4 billion) on its purchases of chip company Nvidia's hardware this year, CEO Elon Musk said in a post on X on Tuesday (June 4).

Musk also said that out of the US$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 reportedly told Nvidia to prioritize shipments of AI processors to his companies X and xAI over the electric-vehicle maker.

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 US$10 billion this year and said it had expected capex to be between US$8 billion and US$10 billion in each of the following years.

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