In giant AI pressure, Elon Musk plans to shop for AMD chips for Tesla

Tesla Inc. Leader Govt Officer Elon Musk mentioned he plans to shop for chips from Complicated Micro Gadgets Inc. as a part of a spending spree on computing {hardware} to maintain synthetic intelligence.

After pronouncing on his X social media platform that Tesla will spend greater than $500 million on Nvidia Corp. {hardware} this yr, Musk was once requested if he would additionally purchase chips from AMD. “Sure,” the billionaire spoke back. 

Nvidia is the present chief in so-called AI accelerators — processors suited for the data-intensive necessities of the era — however competitors like AMD are pushing into the marketplace. AMD unveiled a lineup referred to as the MI300 ultimate month that it mentioned will be capable to run AI instrument sooner than competition can.

AMD stocks in short climbed greater than 1% after-hours Friday following the remarks. That they had been down previous in prolonged buying and selling.

Musk has mentioned that Tesla plans to take a position greater than $1 billion on an effort referred to as Challenge Dojo via the top of 2024. Dojo refers to an in-house supercomputer designed to maintain huge quantities of knowledge, together with video from Tesla vehicles had to create autonomous-driving instrument.

The tactic is to make use of each Nvidia era and its homegrown efforts.

“We are pursuing the twin trail of Nvidia and Dojo,” Musk mentioned all the way through Tesla’s profits name on Wednesday. “However I might recall to mind Dojo as a protracted shot. It is a lengthy shot price taking for the reason that payoff is doubtlessly very prime.”

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