Tesla to spend $4 billion on its purchases from Nvidia during 2024

Tesla will likely spend between $3 billion and $4 billion on its purchases from chip company Nvidia this year, CEO Elon Musk said in a post on X on Tuesday.

According to CNN, Musk also said that of the $10 billion in capital expenditures related to artificial intelligence this year, approximately half will be internal spending.

“For building superclusters for AI training, NVIDIA hardware costs about 65 percent of the cost,” Musk said.

Earlier Tuesday, Tesla reportedly asked Nvidia to prioritize shipments of its X and xAI AI processors ahead of the electric car maker’s shipments.

This development also comes before a decisive shareholder vote on Elon Musk’s salary package at Tesla.

Tesla in April reiterated its forecast for capital spending of more than $10 billion this year, and said it expects capital expenditures to range between $8 billion and $10 billion in each of the following years.