Elon Musk is reportedly planning to acquire AI chips from AMD as Tesla ramps up purchases of the technology for its electronic vehicles.
The confirmation comes after Musk said that the EV manufacturer is allocating $500 million to buy at least 10,000 H100 chips from NVIDIA.
According to Musk, Tesla is prepared to shell out "at least several billion dollars per year at this point."
The AI chips are supposed to be used for the so-called "Project Dojo," a planned supercomputer that will handle most of Tesla's massive amount of data.
Musk has yet to respond to other inquiries regarding the acquisition plan.
Elon Musk Demands 'Strong Influence' on Tesla
The news of plans for Tesla comes in amid his calls to shore up more "influence" on the company.
According to Musk, the company's so-called activist investors can oust him unless he holds more shares to sway through future voting.
The CEO is proposing to raise at least a 25% stake in the company.
Tesla's performance has been plummeting for the past months amid controversies after controversies, a "train wreck" for many of its investors.
The EV manufacturer only grew by 3% last year, much lower than the projected revenue with the promised Cybertruck debuting in the final quarter.
Elon Musk Builds Up AI Start-Up to Challenge OpenAI
Tesla is not the company the tech billionaire is planning to expand his AI vision.
Musk's xAI, the developers of the snarky chatbot Grok, is in talks to raise at least $6 billion in investments to rival the Microsoft-backed OpenAI.
Musk, who also helped founded OpenAI in 2015, was reported to be fundraising with sovereign wealth funds in the Middle East, Japan, and South Korea, people familiar with the matter told the Financial Times.
This is after xAI's recent Securities and Exchange Commission filing revealed that the company is planning to raise $1 billion in funding from equity investors.
The start-up's only product for now is Grok, which is currently being trained on X (formerly Twitter) as part of its paid subscription service.
Musk bought the platform for $44 billion in 2022, a value that has since severely dropped by over 70%, according to investor Fidelity.
