Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk stated on Monday that the EV maker would have had to spend twice as much on buying AI hardware from Nvidia Corp. (NASDAQ:NVDA) to train its systems if it weren’t for the company’s AI4 chipset.
Musk Touts $10 Billion Nvidia Spending
Musk also shared that Tesla was making close to two million cars annually and growing, all of which boast Tesla's "dual SoC AI4, 8 cameras, redundancy in steering actuation and others systems, high bandwidth communication, etc."
"By the end of this year, Tesla will have spent ~$10B cumulatively just on Nvidia hardware for training," the billionaire said.
Musk also added that while Nvidia was providing "helpful tools" to automakers, the industry as a whole is "doing very little" to develop self-driving technology.
Not A Competition For Tesla
On Tuesday, user @jamesdouma shared his thoughts on Nvidia's technology and whether it could pose a challenge to Tesla's Full Self-Driving (FSD) system, stating that it isn't possible and providing an in-depth analysis of the technology.
"There is no scenario in which a company building on top of this new development kit will even slightly dent Tesla’s Robotaxi market opportunity," the user said.
Musk On Nvidia's Alpamayo
Musk had earlier shared that the Alpamayo system could become competitive with Tesla's FSD in the next 5 or 6 years, but that number could stretch further, according to the billionaire. He also shared that the "actual time from when FSD sort of works to where it is much safer than a human is several years."
The Tesla CEO previously stated that the technology could face challenges with distribution, which was also seconded by Tesla's AI Chief, Ashok Elluswamy. However, Musk ultimately wished success for Nvidia's self-driving efforts.
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Price Action: TSLA declined 4.14% to $432.96 at market close, but it gained 0.46% during the after-hours session, according to Benzinga Pro data.
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