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May 14, 2024 410

"Elon Musk says any company that isn’t spending $10 billion on AI this year like Tesla won’t be able to compete"

#global

"Elon Musk has a message for America’s business leaders—either prepare yourself for the AI revolution or start writing your corporate obituary. "

Elon Musk is sending a clear message to America's business leaders: either brace yourselves for the AI revolution or start drafting your corporate obituaries. Amid a reduction in investments into new vehicle capacity, Tesla's CEO is allocating a staggering $10 billion this year solely towards bolstering AI training and inference capabilities, positioning Tesla as a leader in real-world AI applications beyond generative AI. Musk emphasized the imperative nature of this expenditure, asserting that any company not investing at this level and doing so efficiently will struggle to remain competitive.

The significant investment in AI inference primarily targets Tesla's range of cars, hinting at preparations for the next generation of its Full Self-Driving (FSD) computer, known as HW5. Concurrently, Musk is also engaged in another major AI project: developing a humanoid robot named Optimus. This strategic pivot towards AI, veering away from the previous focus on expanding car sales, definitively positions Tesla as a tech company rather than merely an automaker.

Despite facing challenges, such as repeated price cuts and heightened competition in the EV market, Musk remains undeterred. He views Tesla's vehicles not just as cars but as sophisticated platforms for delivering high-margin software and services. Musk's ambitious vision extends beyond selling cars; he aims to establish Tesla as a frontrunner in the future market for autonomous ride-hailing networks. As Tesla navigates this transformative phase, Musk's bold strategy seeks to secure Tesla's position as a trailblazer in the burgeoning field of AI-driven transportation.