Elon Musk's Controversial Move: NVIDIA GPUs Reallocated from Tesla to X
Emails circulating within Nvidia have uncovered a stunning revelation: Elon Musk requested that the tech giant prioritize GPU shipments for his new venture, X, over Tesla. This eye-opening disclosure comes on the heels of growing concerns that Musk isn't fully honoring his fiduciary duties to Tesla’s shareholders.
The Man Behind the Machines
The original report came from CNBC, revealing an Nvidia memo dated from December. In this memo, it was clear that Musk had diverted a shipment meant for Tesla to X.
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. In exchange, original X orders of 12k H100 slated for Jan and June to be redirected to Tesla.
The Ripple Effect
Only a short while after this email, Musk proclaimed that Tesla would be spending about $10 billion on computing power for AI training. However, a contrasting Nvidia email recently surfaced, noting that Musk’s statement “conflicts with bookings and FY 2025 forecasts.” This discrepancy raises further questions about the internal alignment and future planning within these companies.
Moreover, additional emails from Nvidia pointed out that Musk's push for GPUs is aimed at building the “world’s largest cluster” for xAI, scheduled to go online by June.
Electrek’s Observations
Playing devil’s advocate for a moment, there is a chance Tesla wasn't quite ready to receive those GPUs. Evidence suggests that Tesla's ambitious plan to construct a massive 100 MW cluster at Gigafactory Texas has fallen behind schedule. Now expected by August, it lends some context to Musk's decision.
Nevertheless, Elon Musk's ability to reroute crucial resources to his privately owned ventures rather than to publicly traded Tesla highlights a glaring conflict of interest. This incident underscores the necessity for robust corporate governance and heightened oversight of its CEO, ensuring the best interests of shareholders remain front and center.
Moving Forward
It is imperative for investors, analysts, and stakeholders to scrutinize these developments carefully. Elon Musk’s multifaceted leadership requires a delicate balance to prevent potential conflicts and safeguard the trust and investments of Tesla’s shareholders.
This fascinating, yet troubling development serves as a poignant reminder of the complex dynamics that come into play when one individual helms multiple, high-stake ventures. As the story unfolds, it will be captivating to see how Tesla, xAI, and Nvidia navigate these intricate waters.
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