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Musk Says Tesla and xAI to Continue Sourcing Chips from Nvidia and AMD

May 20, 2025, 10:12 p.m. ET

AsianFin -- Elon Musk said Tuesday that Tesla and his AI startup xAI plan to continue purchasing chips from Nvidia (NVDA) and Advanced Micro Devices (AMD), as both companies ramp up their artificial intelligence ambitions.

In an interview with CNBC, Musk revealed that xAI—developer of the Grok large language model—intends to build a facility near Memphis equipped with 1 million GPUs. He noted that 200,000 chips have already been installed at an existing site in the area.

Tesla, meanwhile, requires a significant number of GPUs to train its Optimus humanoid robots. “We expect to still buy a lot of GPUs from Nvidia, some from AMD, and maybe from others,” Musk said. “So long as Nvidia is better than what we make, we’ll keep buying from Nvidia.”

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