Musk: Tesla and xAI will continue to purchase chips from Nvidia and AMD. The chip bottleneck restricting AI development will soon shift to a shortage of "electric equipment".

Musk said on Tuesday that his Tesla and the AI company xAI will continue to purchase chips from semiconductor giants Nvidia and AMD, and may also choose other suppliers in the future. The Tesla CEO revealed that xAI has deployed 200,000 GPUs at the Colossus computing facility in Memphis, Tennessee, and plans to build a new supercomputing center in the suburbs of Memphis equipped with 1 million GPUs, but did not disclose specific order quantities or completion schedules. "A few years ago, I made a very clear prediction - the bottleneck for the development of AI will be chips," Musk said. Last year, he requested that Nvidia prioritize the supply of a large number of GPUs to xAI, even ahead of Tesla. Musk predicts that the current chip bottleneck constraining AI development will soon shift to a shortage of "power equipment", as early as around mid-2026, AI companies may face "fundamental power shortages".