Elon Musk rerouted Nvidia AI chips from Tesla to his AI company, xAI. Internal Nvidia emails obtained by CNBC show that Musk ordered the delivery of 12,000 GPUs with priority to X and xAI instead of Tesla. According to CNBC, this delays the delivery of more than $500 million worth of chips to Tesla by months, potentially hindering the development of the infrastructure needed for autonomous driving and robotics. In a post on X, Musk explained that "Tesla had no place to send the Nvidia chips to turn them on, so they would have just sat in a warehouse." Redirecting the scarce chips illustrates Musk's conflict of interest between Tesla and his AI ambitions. Musk has demanded more Tesla stock in the past, at least 25%, to invest more in AI within the company. It's all about controlling a potential key technology: Musk is the sole ruler of xAI.
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