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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 would spend more than $500 million on Nvidia Corp hardware this year, Musk was asked if he would also buy chips from AMD. “Yes,” replied the billionaire.
Nvidia is the current leader in so-called AI accelerators – processors adapted to the data-intensive needs of the technology – but rivals like AMD are making a push into the market. AMD last month unveiled a lineup called the Mi300 that it said would be able to run AI software faster than competitors.
AMD shares briefly rose more than 1% on Friday following the comments. They were down first in the expanded business.
Musk has said Tesla plans to invest more than $1 billion on the effort, called Project Dojo, by the end of 2024. Dojo refers to an in-house supercomputer designed to handle massive amounts of data, including videos from Tesla cars, needed to create autonomous-driving software.
The strategy is to utilize both Nvidia technology and its in-house efforts.
“We’re following a dual path of Nvidia and Dojo,” Musk said during Tesla’s earnings call on Wednesday. “But I would think of the dojo as a long shot. “This is a long shot because the rewards are potentially huge.”
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