Elon Musk intends to purchase AMD chips for Tesla as part of a major AI initiative.
Elon Musk, the CEO of Tesla Inc., has announced his intention to purchase chips from Advanced Micro Devices Inc. as part of a significant investment in computing hardware for the purpose of managing artificial intelligence.
After saying on his X social media platform that Tesla will spend more than $500 million on Nvidia Corp. hardware this year, Musk was asked if he would also buy chips from AMD. “Yes,” the billionaire replied.
Nvidia is currently the leading so-called AI accelerator—processors suited to the data-intensive demands of technology—but competitors like AMD are making inroads. Last month, AMD unveiled a lineup called the MI300, which it said can run AI software faster than competitors can.
Shares of AMD briefly rose more than 1% in after-hours Friday following the remarks. They had been declining in earlier extended trading.
Musk has said that Tesla plans to invest more than $1 billion in a project called Project Dojo by the end of 2024. Dojo refers to an in-house supercomputer designed to process massive amounts of data, including videos of Tesla cars, needed for autonomous driving software.
The strategy is to use both Nvidia’s technology and its domestic efforts.
“We’re continuing the dual path of Nvidia and Dojo,” Musk said during Tesla’s earnings call on Wednesday. “But I thought of Dojo as a long shot. It’s a long shot because it’s potentially very high.
