John Furner Steps Into Walmart CEO Role Amid Economic Pressures and AI Push 
Peter Thiel Dumps Entire Nvidia Stake Amid Growing AI Bubble Fears 
South Korea’s Tech Giants Boost Domestic Investments Amid U.S. Trade Deal Concerns 
Google Pushes Back as Court Weighs Potential Ad Tech Breakup 
Siemens Energy Lifts Profit Targets as Strong Q4 Results Offset Wind Division Struggles 
Yes, there is an AI investment bubble – here are three scenarios for how it could end 
AMD Targets Over 35% Annual Growth Driven by Data Center and AI Expansion 
Samsung Shares Jump as Company Announces Massive ₩450 Trillion Investment Plan 
Blue Origin’s New Glenn Achieves Breakthrough Success With First NASA Mission 
Nomura Probes Potential Profit Inflation in India Fixed-Income Unit 
Tesla’s Long-Term Outlook Gains Momentum as Ron Baron Predicts Massive Stock Surge Driven by AI and Robotics 
Verizon to Slash 15,000 Jobs as New CEO Launches Major Restructuring 
Nvidia Set for Breakout Quarter as Morgan Stanley Sees Surge in Blackwell Demand 
Alibaba Rolls Out Qwen App Public Beta, Expands Push Into Consumer AI 
Shiseido Shares Tumble as China Issues Travel Warning to Japan 
Hyundai Motor Group Commits Over 125 Trillion Won to Boost South Korea’s Auto Industry 
Elon Musk’s Tesla and xAI are projected to allocate $20 billion to AI initiatives by the end of 2024, according to a Morgan Stanley analysis. This includes significant investments in supercomputers, GPU clusters, and proprietary AI technologies to solidify their leadership in the rapidly evolving AI sector.
Tesla to Invest $10 Billion in AI by 2024, Focusing on Supercomputers and Infrastructure
According to a recent analysis conducted by Adam Jonas of Morgan Stanley, Tesla is anticipated to allocate the combined market capitalization of Rivian and Lucid Group to AI initiatives by the conclusion of 2024. Musk is making substantial investments to establish a dominant position in the swiftly evolving AI sector, as evidenced by the approximately $10 billion in AI-related expenditure from xAI, his AI-focused venture.
In a recently published investment note, Adam Jonas provided a comprehensive breakdown of these expenditures and outlined the anticipated spending by Musk's enterprises by the end of 2024. Tesla is expected to allocate a staggering $10 billion to AI initiatives in 2024. According to Wccftech, this encompasses a supercluster in Austin that will contain approximately 50,000 NVIDIA H100 GPUs and 20,000 of Tesla's proprietary D1 processors. The company's Dojo supercomputer and inference-driven computing will receive additional funding.
This projection is corroborated by Tesla's most recent Form 10-Q filing, which indicates that $2.6 billion was allocated to "Computer Equipment, Hardware, and Software PPE," $2.5 billion to AI infrastructure, and nearly $7 billion to "Construction in Progress," which is predominantly for AI-related assets. The $10 billion estimate is consistent with these expenditures.
Jonas provides a more detailed breakdown of Tesla's AI expenditures, predicting that $5 billion will be allocated to internal development, $3-4 billion to NVIDIA GPUs, and the remaining amount to infrastructure.
xAI to Invest $10 Billion in AI Supercluster, Expanding GPU Capacity and Training Grok 3 LLM
xAI will spend approximately $10 billion by the end of 2024, primarily due to its massive supercluster, Colossus, and Tesla's efforts. The Grok 3 large language model (LLM), which is anticipated to be launched in December, is presently being trained on this supercluster equipped with 100,000 liquid-cooled H100 GPUs.
Musk previously declared that the subsequent substantial phase of xAI would involve integrating 300,000 B200 units with CX8 networking by the summer of 2025. In a funding round that valued the company at $18 billion, xAI raised $6 billion earlier this year. xAI's portfolio will be expanded by the company's increased investments in GPU clusters despite Grok being its sole product. This move is indicative of Musk's aggressive approach to AI.
