TECH NEWS – Elon Musk’s company has huge expectations, but if we take into account that Tesla showed a 130% increase in the computing capacity needed for artificial intelligence training in the first year of 2024 alone, the company may be able to achieve this goal.
The company hopes for an increase of nearly 500% during the year. This is certainly exceptionally large, but Elon Musk’s ambitions are perhaps understandable here. Tesla has an Nvidia H100 GPU between 30k and 350k. Musk responded in a tweet, which has since become unavailable, that the exact measurement would place Tesla in second place and xAI in third place, presumably taking computing power into account. Tesla announced in its quarterly business report that the capacity of the AI trainer has increased by an amount that corresponds to 40,000 Nvidia H100 GPUs.
In January, a $500 million investment (equivalent to about 10,000 H100 GPUs) was made in Tesla’s Dojo supercomputer, and then Musk said that they would spend even more on Nvidia hardware during 2024, as competitiveness in artificial intelligence According to him, his stake is equivalent to many billions of dollars every year. By the end of 2024, Tesla wants to achieve a 467% increase in the computing capacity of the AI trainer, which is approx. 85,000 means an Nvidia H100 GPU.
Due to the aggressive expansion, Tesla will have to sacrifice its free cash flow: in the first quarter of 2024, this amount was minus 2.5 billion dollars, which was driven by the 2.7 billion dollar inventory increase and the 1 billion dollar investment in the AI infrastructure. in the first quarter. However, the whole thing can be changed by Nvidia’s plans, because the “greens” will release the new superchip, the GB200 Grace Blackwell, sometime during the year, which offers more computing power (it can also run an AI model with 27 trillion parameters; its speed, for example 30 times more in ensuring the response of chatbots), presumably more expensive, and probably with higher consumption, which can already reach dangerous levels; this was recently in the news.
Musk puts everything on the AI sheet.
Source: WCCFTech, Tesla
