Tesla Inc. (TSLA) is on track to surpass tech giants like Amazon.Com Inc. (AMZN) and Alphabet Inc.’s (GOOGL) Google as the largest customer of NVIDIA Corporation’s (NVDA) H100 chips. According to CNBC, Tesla CEO Elon Musk has revealed plans to install 85,000 H100 chips by the end of the year, bringing the company’s total to 120,000. This move highlights Tesla’s commitment to enhancing its AI capabilities.
The H100 chips are crucial for Tesla’s AI initiatives, which include the development of advanced robots such as Optimus Bot and Robotaxi, as well as the Dojo supercomputer. These chips are designed for AI applications and are currently in high demand.
Meta Platforms Inc. (META) is currently NVIDIA’s top customer, but Tesla’s significant order will likely make it the largest buyer. Omdia reports that Microsoft Corp. (MSFT) is the second-largest buyer of NVIDIA’s chips, followed by Oracle Corp. (ORCL), Tencent Holding Ltd. (TCEHY), Google, and Amazon, each with orders in the range of 50,000 chips.
Musk has previously commented on NVIDIA’s substantial market capitalization loss, calling it “rookie numbers.” However, analysts remain optimistic about NVIDIA’s prospects, citing its strong position in the accelerator market, particularly with its Blackwell product.
Tesla stock has gained 205% over the past 12 months, while NVIDIA stock has lost 11%. At the time of writing, TSLA shares traded 11.40% higher premarket at $161.21.
