Is Nvidia's H100 AI Chip Worth The Hype? Musk Reveals Effects On Tesla's FSD Testing

This week, Tesla, Inc. TSLA made a significant move by activating a 10,000-unit Nvidia Corp. (NVDA) H100 GPU cluster to accelerate the training of its full self-driving technology. Elon Musk, the CEO of the electric vehicle company, also weighed in on the chip’s performance.

What Happened: Musk shared his insights in a post on X, revealing that the H100 has proven to be approximately three times faster than the A100 in the company’s tests. His remarks were in response to a user’s observation that Nvidia claimed the H100 could achieve nine times faster AI training than the A100.

This development aligns with Tesla’s focus on supercharging its AI capabilities. The activation of 10,000 A100s and an equivalent number of H100s this week potentially accelerates the AI training process by a remarkable seven times, as pointed out by the user.

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Why It Matters: Tesla’s strategic approach encompasses its in-house supercomputer, Dojo, which entered production this July. By combining the power of Nvidia chips and Dojo, the company aims to achieve advanced computational capabilities.

When posed with the question of which company will wield more computing power by 2025, Musk opted for a cryptic response, stating, “Great question. We shall see.”

Tesla’s significant reliance on its FSD technology underscores its potential to generate a high-margin recurring revenue stream. As FSD undergoes wider beta testing, Tesla is under pressure to make it globally applicable through thorough dataset training.

Tim Zaman, Tesla’s AI Infra & AI Platform Engineering Manager, had expressed optimism in the company’s exceptional training advantages. Zaman noted last week, “Due to real-world video training, we may have the largest training datasets in the world, hot tier cache capacity beyond 200PB – orders of magnitudes more than LLMs.”

Meanwhile, as the tech sector grapples with supply chain disruptions, NVIDIA is reportedly taking bold steps to triple the production of its highly sought-after H100 AI processor for 2024.

Price Action: Tesla closed Tuesday’s session with a 7.69% gain at $257.18, as per Benzinga Pro data. Nvidia also exhibited a positive performance, ending the day up 4.16% at $487.84.

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Image created via photos from Shutterstock and Nvidia