Musk Gives Explanation for Why He Diverted Chips From Tesla to X

Elon Musk confirmed he diverted artificial intelligence chips away from Tesla Inc. to his X Corp. and xAI Corp. ventures, offering explanations both for the redirected shipment and internal Nvidia Corp.emails casting doubt on the carmaker’s procurement plans.

In a series of posts Tuesday on X, Musk wrote that Tesla had no place to put Nvidia chips where they could be turned on. CNBC reported earlier that the billionaire redirected 12,000 of the chipmaker’s H100 graphics processing units originally slated for Tesla to X instead, citing an Nvidia memo from December.

In another email CNBC viewed from late April, ...