Tesla Offers To Spend Billion Dollars on AI Development 2024

Morgan Stanley's Adam Jonas on Elon Musk's AI spending: "The Muskonomy is spending the market caps of RIVN and LCID combined, on Al, this year alone.

"Tesla intends to spend at least $10B on Al in 2024, on several compute projects: the supercluster in Austin, Texas (planned to house 50,000 H100 GPUs and 20,000 of Tesla's own D1 chip), an inference computer, and Dojo.

Their most recent (2Q24) 10Q showed $2.6bn of Computer Equipment, Hardware and Software PPE, $2.5b of Al Infrastructure PPE, and nearly $7bn of Construction in Progress (primarily relating to Al related assets), squaring with the $10b projection.

Of the $10bn, Musk estimated spending $5b on internal development, $3-4bn on NVDA GPUs alone, and the rest on residual infrastructure. Not to mention xAl and its own - $10b spend by end of 2024 on the Colossus super cluster..."