Billionaire Elon Musk recently discussed the future plans for Tesla (TSLA) and his AI company, xAI, in an interview. xAI will continue sourcing chips from semiconductor giants NVIDIA (NVDA, Financial) and AMD. The company has deployed over 200,000 GPUs in its Colossus supercomputer in Memphis, aiming to scale up to 1 million GPUs at a new facility under planning.
xAI, founded by Musk, aims to create an alternative to OpenAI's ChatGPT, and is now the parent company of the social media platform X, formerly known as Twitter. Musk highlighted that chip supply limitations, which he predicted years ago, are becoming a reality. Priority orders for xAI have already been placed with NVIDIA, sometimes surpassing Tesla's needs.
Tesla’s Dojo supercomputer in Buffalo, New York, is extensively used for autonomous driving and humanoid robot Optimus model training. The project is seen as a landmark for transforming Memphis into a high-tech manufacturing hub, although it raises environmental concerns due to its energy consumption and emissions from natural gas turbines.
