Tesla Inc. Chief Executive Elon Musk said he plans to buy chips from Advanced Micro Devices Inc. as part of a spending spree on computing hardware to tackle artificial intelligence.
It is reported that Musk talked about the AI chip procurement plan on his He replied, "Yes."
Nvidia is currently the leader in so-called artificial intelligence accelerators - processors suited to the technology's data-intensive requirements - but rivals such as Advanced Micro Devices are also making serious inroads into the market. AMD last month unveiled a product called the MI300 that the company says will run artificial intelligence software faster than competitors.
After Musk made the above remarks, AMD's stock price rose by more than 1% after the market closed on Friday, but the increase narrowed slightly at press time.
Musk also said Tesla plans to invest more than $1 billion by the end of 2024 in a project called "Dojo." Dojo refers to an in-house supercomputer designed to process large amounts of data, including video from Tesla vehicles needed to create self-driving software.
The company's strategy is said to be to use both external technology such as Nvidia and its own products.
"We're going down a dual path of Nvidia and Dojo," Musk said during Tesla's earnings call on Wednesday. "But I think Dojo is a very risky bet. But it's worth the gamble because the rewards could be very high."
However, Musk publicly threatened last week that he would rather develop AI products outside Tesla if he could not gain greater control of the company.
"I am not willing to develop Tesla into a leader in artificial intelligence and robotics without ~25% voting control," he wrote in a post on X.