10:30 AM EDT, 06/04/2024 (MT Newswires) -- (Updates with further details in the third, fourth and fifth paragraphs, and Nvidia ( NVDA ) declining to comment in the sixth paragraph.)

Tesla (TSLA) Chief Executive Elon Musk diverted a significant shipment of Nvidia ( NVDA ) artificial intelligence processors reserved for the electric vehicle maker to his X social-media company, CNBC reported Tuesday, citing emails written by Nvidia ( NVDA ) senior staff and shared inside the company.

In so doing, Musk pushed back Tesla's receipt of more than $500 million in graphics processing units by months, which has likely added to delays in setting up the supercomputers that the EV maker says it needs to produce autonomous vehicles and humanoid robots, according to the report.

"Elon prioritizing X H100 GPU cluster deployment at X versus Tesla by redirecting 12k of shipped H100 GPUs originally slated for Tesla to X instead," the report quoted an Nvidia ( NVDA ) memo from December as saying. "In exchange, original X orders of 12k H100 slated for [January] and June to be redirected to Tesla."

Musk also seeks to build "the world's largest GPU cluster" in North Dakota at xAI, according to an internal Nvidia ( NVDA ) email from February, which described a "Musk mandate" to make all 100,000 chips available to xAI by the end of the year, CNBC reported.

xAI owns the chatbot Grok, a likely competitor to OpenAI's ChatGPT and other generative AI services.

Nvidia ( NVDA ) declined to comment to MT Newswires, while Tesla didn't immediately respond to a request for comment by MT Newswires. X and xAI couldn't be reached for comment by MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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