Charleswood Limited examines Tesla and xAI's plan to continue buying chips from AMD & Nvidia

WEST FARGO, N.D. - May 26, 2025 - PRLog -- Charleswood Limited, a worldwide research and investment advice business focusing on emerging technologies, has issued a fresh study of Tesla and xAI's ongoing commitment to procuring high-performance CPUs from semiconductor behemoths Nvidia and AMD. The move demonstrates the rising need for increased processing capacity in AI research and autonomous systems.

Despite increasing speculation that Tesla and Elon Musk's artificial intelligence startup xAI may move toward in-house chip development, both companies have reaffirmed their plans to keep purchasing GPU hardware from Nvidia and AMD in the foreseeable future. The strategy aligns with their aggressive timelines for scaling AI capabilities, full self-driving (FSD) technologies, and next-generation machine learning models.

"Tesla and xAI's reliance on Nvidia and AMD highlights the sheer computational intensity of today's AI and autonomy ambitions," said Daniel Reilly, Senior Consumer Technology Analyst at Charleswood Limited. "These chips are critical to processing vast datasets and training complex neural networks in real time."

Charleswood's evaluation notes that while internal chip design may be a longer-term objective for Musk's ventures, the current market leaders offer performance advantages and supply chain maturity that are difficult to replicate quickly. Nvidia's H100 and AMD's MI300 series GPUs remain essential to many of the most advanced AI models currently in production.

xAI, which aims to develop artificial general intelligence (AGI) in alignment with Musk's vision for safe, transparent AI, is reportedly building supercomputing clusters powered by Nvidia chips. Tesla, meanwhile, continues to expand its Dojo training platform while also leveraging external GPU power to accelerate progress on its autonomous driving software.

The continued partnership with Nvidia and AMD suggests a blended strategy — combining proprietary development with access to best-in-class commercial silicon.

"This hybrid approach allows Tesla and xAI to move fast without sacrificing performance or innovation," Reilly added. "It's a calculated choice that balances speed, cost, and long-term control."

Charleswood Limited will continue to monitor developments in the AI chip supply chain and their implications for the broader tech and automotive industries.

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