Tesla Inc. Chief Executive Officer Elon Musk said he plans to buy chips from Advanced Micro Devices Inc. as part of a spending spree on computing hardware to handle artificial intelligence.
After saying on his X social media platform that Tesla will spend more than $500 million on Nvidia Corp. hardware this year, Musk was asked if he would also buy chips from AMD. “Yes,” the billionaire replied.
Nvidia is the current leader in so-called AI accelerators — processors suited to the data-intensive requirements of the technology — but rivals like AMD are pushing into the market. AMD unveiled a lineup called the MI300 last month that it said will be able to run AI software faster than competitors can.
AMD shares briefly climbed more than 1% after-hours Friday following the remarks. They had been down earlier in extended trading.
Musk has said that Tesla plans to invest more than $1 billion on an effort called Project Dojo by the end of 2024. Dojo refers to an in-house supercomputer designed to handle massive amounts of data, including video from Tesla cars needed to create autonomous-driving software.
The strategy is to use both Nvidia technology and its homegrown efforts.
{{/usCountry}}The strategy is to use both Nvidia technology and its homegrown efforts.
{{/usCountry}}“We’re pursuing the dual path of Nvidia and Dojo,” Musk said during Tesla’s earnings call on Wednesday. “But I would think of Dojo as a long shot. It’s a long shot worth taking because the payoff is potentially very high.”