Elon Musk and the confusion around H100 chips. Is this about the race for AGI?

In recent days, there has been a lot of media buzz around Elon Musk and the H100 chips from Nvidia. This confusion is caused by an article on CNBC. In this text, the author described the redirection of the shipment of H100 chips originally intended for Tesla to xAI, the arm of Portal X responsible for artificial intelligence.

Confusion with H100 chips and generative artificial intelligence from Elon Musk

From the very beginning of the generative revolution, i.e. when ChatuGPT was introduced into global use, it has been known that Elon Musk unofficially joined the race with OpenAI. Although the multi-billionaire and serial entrepreneur initially clearly appealed to stop work on such a rapid development of artificial intelligence, he ultimately entered the race himself. The topic of Elon Musk and AI has become so popular in the media that journalists very often investigate circumstantial evidence allegedly leading to Musk intensifying his work on Grok and xAI.

A June 4 article on CNBC accused Musk of instructing Nvidia to prioritize the transfer of H100 artificial intelligence chips not to the originally designated Tesla, but to Company X and its related xAI. The journalist stated in this article that it was about redirecting up to 12,000 Nvidia H100 chips from Tesla to X. Musk responded to these allegations on the X website, denying the rumors written by the journalist and outright calling him a “liar”.

Did the CNBC article make more of a fuss than it initially seemed?

It turns out that the consequences of the article published by CNBC are much higher than just the issue of a temporary impact on the image on the Internet. Well, after the article was published, Tesla shares allegedly dropped by 1%. Additionally, CNBC claims that this information has exacerbated tense relations between Elon Musk and some Tesla investors who believe that the CEO has a conflict of interest and too many things on his mind.

In a series of tweets, Musk explained that Tesla had no need for these chips at this point and they would be sitting uselessly in a warehouse. The entrepreneur added that the expansion of the Giga Texas factory is almost ready. This factory will accommodate 50,000 H100 chips for FSD (Full Self-Driving) training.