June 4 (Reuters) - Tesla CEO Elon Musk has told

Nvidia ( NVDA ) to prioritize shipments of AI processors to his

companies X and xAI over the electric-vehicle maker, CNBC

reported on Tuesday.

"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," an internal Nvidia ( NVDA ) memo from December

showed, according to the CNBC report.

"In exchange, original X orders of 12K H100 slated for Jan

and June to be redirected to Tesla," the memo said.

Tesla did not immediately respond to a Reuters request for

comment, while Nvidia ( NVDA ) declined to comment.

The change delays Tesla's receipt of more than $500 million

in processors by months, according to CNBC.

Earlier this year, Musk said Tesla will increase the

number of H100s - Nvidia's ( NVDA ) most advanced AI processors - that it

has deployed and will spend $10 billion this year "in combined

training and inference AI".

Tesla has been battling a slowdown in the EV market and

announced layoffs of more than 10% of its staff globally in

April.

(Reporting by Yuvraj Malik in Bengaluru; Editing by Devika

Syamnath)