Tesla to buy AMD chips amid AI hardware expansion: Musk
What's the story
Tesla CEO Elon Musk has shared plans to buy chips from Advanced Micro Devices (AMD) for a major investment in artificial intelligence (AI) computing hardware.
This news came after Musk posted on his X social media platform that Tesla will spend over $500 million on NVIDIA hardware this year.
When asked if he would also buy chips from AMD, Musk replied, "Yes."
Following Musk's announcement, AMD's shares rose more than 1% after being down in extended trading earlier.
AMD v/s NVIDIA
AMD's MI300 lineup to compete with NVIDIA's AI accelerators
NVIDIA is currently leading the market in AI accelerators, which are processors designed for the data-heavy demands of AI technology.
However, rivals like AMD are also stepping into the market to compete and gain some shares.
In December 2023, AMD unveiled the MI300 lineup, claiming it will run AI software faster than the competitors.
Tesla's next move
Project Dojo: Tesla's billion-dollar AI investment
Meanwhile, Musk has revealed that Tesla plans to invest over $1 billion in Project Dojo by the end of 2024.
It is an in-house supercomputer designed to process massive amounts of data, including videos from Tesla cars, which is crucial for developing autonomous driving software.
This investment underscores Tesla's dedication to advancing AI technology within the automotive industry.
The strategy involves using both NVIDIA's technology and homegrown efforts.
Insights
Pursuing dual path of NVIDIA and Dojo
During Tesla's earnings call on Wednesday, Musk stated, "We're pursuing the dual path of NVIDIA and Dojo."
He added, "But I would think of Dojo as a long shot. It's a long shot worth taking because the payoff is potentially very high."
This comment highlighted Tesla's strategy of using both established technology from NVIDIA and its own innovative efforts through Project Dojo to advance AI technology.