Tesla and xAI Plan to Keep Buying Chips From Nvidia and AMD, Musk Says

Elon Musk expects Tesla (TSLA) and xAI to continue buying chips from Nvidia (NVDA) and Advanced Micro Devices (AMD), the CEO said in an interview with CNBC Tuesday.

Musk said xAI, the company behind the Grok large language model, plans to build a facility near Memphis that will house 1 million GPUs. The X platform parent has already installed 200,000 chips at an existing facility in the area, Musk said. 

Meanwhile, Tesla needs “quite a few” GPUs for training its Optimus humanoid robots, Musk said. “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.”

Nvidia, which saw its shares surge over the past week after announcing a major deal to supply chips to Saudi AI startup Humain, is due to report earnings next week. Shares of AMD and Tesla had also rallied last week amid optimism that a series of AI partnerships announced during President Donald Trump’s four-day trip to the Middle East could mean more deals to come.

In a separate interview Tuesday, Musk told attendees of the Qatar Economic Forum he remains committed to being CEO of the electric vehicle maker for at least the next five years.

Shares of Tesla, AMD, and Nvidia were little-changed in after-hours trading, after Tesla eked out a 0.5% gain during Tuesday’s regular session, while AMD and Nvidia lost about 1%.