Tesla To Spend $10B In Training And Inference AI In 2024, Says Billionaire Elon Musk

Tesla Motors, Inc. -4.02%

Tesla Motors, Inc.

TSLA

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Tesla Inc (NASDAQ:TSLA) CEO Elon Musk said on Sunday that the company will spend around $10 billion in AI training and inference combined for 2024.

What Happened: The CEO made the announcement via social media platform X. “Any company not spending at this level, and doing so efficiently, cannot compete,” he added.

During Tesla’s first-quarter earnings call earlier this month, the company said that it increased AI training compute by over 130% in the quarter and spent $1 billion on AI infrastructure. The company added that it will continue to increase its core AI infrastructure capacity in the coming months.

“Regarding AI compute, over the past few months, we’ve been actively working on expanding Tesla’s core AI infrastructure. For a while there, we were training constrained in our progress. We are, at this point, no longer training constrained and so we’re making rapid progress,” Musk said during the company’s earnings call.

Why It Matters: Musk has previously said that Tesla is more a technology and AI company than merely an auto manufacturer.

The company is currently utilizing its AI infrastructure and attempting to solve autonomous driving. The company is training its full self-driving (FSD) driver assistance software on large amounts of visual data gathered from its fleet and expects it to transport people from point to point with no human interference in due time. The CEO, in 2023, even pegged vehicle autonomy as the main driver of the company’s value.

"Even if I got kidnapped by aliens tomorrow, Tesla will solve autonomy, maybe a little slower, but it would solve autonomy for vehicles at least," Musk said earlier this month.

Check out more of Benzinga's Future Of Mobility coverage by following this link.

Read More: After China, Tesla Announces European Tour For Cybertruck Despite Sales Being Limited To US

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