Tesla (TSLA.O) is projected to spend between $3 billion and $4 billion on Nvidia (NVDA.O) hardware this year, according to a statement by CEO Elon Musk on X. Musk disclosed that out of Tesla’s $10 billion in artificial intelligence-related capital expenditure for 2024, around half will be allocated to internal spending. He emphasized that Nvidia hardware will account for approximately two-thirds of the costs associated with building AI training superclusters.
Earlier on Tuesday, reports indicated that Musk had instructed Nvidia to prioritize shipments of AI processors for his companies X and xAI over Tesla. This development comes as Tesla approaches a critical shareholder vote on Musk’s pay package. In April, Tesla reiterated its capital expenditure forecast, projecting more than $10 billion this year and estimating annual capex between $8 billion and $10 billion for the coming years.