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Fortune

Christiaan Hetzner

Elon Musk admits diverting Tesla’s AI chips to his other companies, claiming ‘they would have just sat in a warehouse’

Elon Musk Tesla Inc. United States Nvidia XAI CNBC

Tesla CEO Elon Musk (Credit: Taylor Hill—Getty Images)

Elon Musk admitted diverting Nvidia’s latest AI chips originally destined for Tesla to his latest startup xAI and social media company X.

Confirming a report by CNBC on Tuesday, Musk explained the move by saying the chips, used for training neural networks, were better used elsewhere at the time.

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