Elon Musk says Tesla plans to spend $10 bn on AI this year

Tesla, the leading electric vehicle maker, is targeting artificial intelligence-related capital expenditure of $10 billion in 2024, Reuters news report said.
Tesla AI investmentTesla will spend between $3 billion and $4 billion on its purchases of chip company Nvidia’s hardware this year, CEO Elon Musk said in a post on X on Tuesday.

Elon Musk said that out of the $10 billion in artificial intelligence-related capital expenditure this year, around half would be internal spend.

“For building the AI training superclusters, NVidia  hardware is about 2/3 of the cost,” he said on X.

Earlier on Tuesday, Tesla reportedly told Nvidia to prioritize shipments of AI processors to his companies X and xAI over the electric-vehicle maker.

Tesla in April reiterated its capital expenditure forecast of more than $10 billion this year and said it had expected capex to be between $8 billion and $10 billion in each of the following years.

Tesla, announcing its latest financial result, said it has been investing in the hardware and software ecosystems necessary to achieve vehicle autonomy and a ride-hailing service.

Tesla believes a scalable and profitable autonomy business can be realized through a vision-only architecture with end-to-end neural networks, trained on billions of miles of real-world data. Since the launch of FSD (Supervised) V12 earlier this year, it has become clear that this architecture long pursued by Tesla is the right solution for scalable autonomy.

“To further improve our training capability, we will increase our core AI infrastructure capacity in the coming months. In Q1, we completed the transition to Hardware 4.0, our latest in-vehicle computer with increased inference processing power and improved cameras,” Tesla said.

Tesla rolled out FSD (Supervised) with a 30-day free trial to eligible cars in U.S. and Canada. FSD (Supervised) can change lanes, select forks to follow routes, navigate around vehicles and objects and make turns.

Tesla released Autopark to existing eligible FSD (Supervised) and Enhanced Autopilot customers. Tesla is currently working on ride-hailing functionality that will be available in the future. Tesla said it believes the Tesla software experience is best-in-class across all products, and plan to seamlessly layer ride-hailing into the Tesla App.

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