Proactive Investors - Elon Musk has asked NVIDIA Corp (NASDAQ:NVDA, ETR:NVD) to prioritize shipments of AI processors to his social media platform X and AI startup xAI ahead of electric vehicle firm Tesla Inc (NASDAQ:TSLA), CNBC reported on Wednesday.
According to the report, which cited internal Nvidia emails, Musk’s diversion of these chips to X has delayed Tesla's receipt of over $500 million in processors by months.
“Elon prioritizing X H100 GPU cluster deployment at X versus Tesla by redirecting 12k of shipped H100 GPUs originally slated for Tesla to X instead,” an Nvidia memo from December said, CNBC reported.
“In exchange, original X orders of 12k H100 slated for Jan and June to be redirected to Tesla.”
The move has reignited concerns that Musk is spread too thin between his various ventures, which include X, xAI, Tesla, aerospace technology company SpaceX, brain-computer interface startup Neuralink and tunnelling venture The Boring Co.
Per CNBC’s report, tensions are escalating between Musk and some Tesla shareholders who are questioning if Musk is fulfilling his obligations to the EV maker as his other companies require his attention, resources, and capital.
This comes ahead of a key shareholder vote on Musk's $56 billion compensation package at Tesla's upcoming annual general meeting on June 13.
Tesla on Tuesday reiterated its support for the pay deal, warning that alternative compensation would be more costly to shareholders.