
Elon Musk provided the specific reason for redirecting the Nvidia H100 GPUs from Tesla to X and xAI, stating that Tesla had no place to send the Nvidia chips to turn them on, so they would have just sat in a warehouse.

The total value of the 12,000 H100 GPUs that were redirected to X and xAI is a little under half a billion dollars5.

Tesla originally ordered 12,000 Nvidia H100 GPUs. These GPUs were intended for Tesla's EV production to be used in the development of its self-driving systems and AI-based robotics3. However, due to logistical challenges, Elon Musk redirected these GPUs to X and xAI, two private firms he owns2. The GPUs will be used to build the "world's largest GPU cluster" in North Dakota.