Tesla (TSLA) CEO Elon Musk reportedly ordered Nvidia (NVDA) to ship out and divert AI chips originally meant for Tesla to X and Musk's xAI startup, according to emails obtained by CNBC. The Morning Brief team reports on this. For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Luke Carberry Mogan.
Electic vehicle maker Tesla will stop production at its German plant in Gruenheide for five days in June to improve processes in the factory outside Berlin, a spokesperson said on Tuesday. Confirming a report by business daily Handelsblatt, the spokesperson said Tesla would pause production in the vehicle production and powertrain areas on June 7, 14, 17, 27 and 28. Tesla has already paused production at the site twice this year.
"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 internal Nvidia memo from December showed, according to the CNBC report. "In exchange, original X orders of 12K H100 slated for Jan and June to be redirected to Tesla," the memo said. Tesla did not immediately respond to a Reuters request for comment, while Nvidia declined to comment.