Tesla CEO Elon Musk Reiterates Continued Dependence On Both Nvidia And Dojo For AI Processing

Tesla Inc TSLA CEO Elon Musk on Monday said that the EV giant will continue to rely on chip-maker Nvidia Corp NVDA.

What Happened: “We're going with both Dojo and Nvidia,” Musk said. He was responding to an X.com user who wondered if Tesla would pull a page from Google’s books and rely on its own AI computers.

Dojo is Tesla's custom-built supercomputer platform, specifically designed from scratch for AI machine learning purposes, with a particular focus on video training using data obtained from its fleet of vehicles. The company also has a NVIDIA GPU-based supercomputer.

Why It Matters: During the company’s second-quarter earnings call last month, Musk clarified that the company expects to use both NVIDIA and Dojo to process the large amount of data from Tesla’s growing fleet of vehicles.

“We're using a lot of NVIDIA hardware. We'll continue to take NVIDIA hardware as fast as NVIDIA will deliver it to us. Tremendous respect for Jensen and NVIDIA. They've done an incredible job,” Musk said.

However, the EV giant will also be spending over $1 billion on Dojo over the next year, Musk said. The CEO expressed doubts if Nvidia can actually deliver the company enough GPUs owing to their large customer base. “They've been kind enough to nonetheless, prioritize some of our GPU orders. But yes, the sheer magnitude of video training,” Musk said.

Last week, Nvidia reported second-quarter revenue that notably exceeded expectations thanks to the strong momentum imparted by the recent AI boom. Nvidia's second-quarter non-GAAP earnings per share rose 429% year-over-year from 51 cents to $2.70. The company also offered upbeat guidance and said that it expects revenue of $16 billion-plus or minus 2% in the third quarter.

Price Action: Tesla shares closed up nearly 0.1% at $238.82 on Monday — On the same day, Nvidia shares jumped 1.78% to close at $468.35, according to Benzinga Pro data.

Check out more of Benzinga’s Future Of Mobility coverage by following this link.

Read More: Musk Takes A Swipe At Slow-Moving Legacy Automakers: ‘Will Probably Take Major Car Companies About Three Years’