In a move that has left the tech industry reeling, Tesla CEO Elon Musk confirmed the diversion of a $500 million shipment of Nvidia AI chips intended for Tesla to his own companies, X and xAI. This decision has raised concerns about potential delays in Tesla’s AI initiatives, including the development of self-driving cars and robotics. Shareholders have expressed dismay, questioning Musk’s commitment to Tesla amidst the company’s financial challenges and the delay in driver assistance software.In parallel, the AI sector is witnessing significant investment, as Canadian startup Cohere has raised $450 million from investors like Nvidia, Salesforce, and Cisco. This funding round, which values Cohere at $2.2 billion, is part of a larger effort to secure a $5 billion valuation as the company competes with other AI firms.At the same time, OpenAI, the creator of ChatGPT, is facing internal strife. Employees have penned an open letter warning of the ‘grave risks’ associated with AI development and the lack of transparency within the industry. They advocate for broader whistleblower laws and protections for those raising concerns about AI safety risks, emphasizing the potential for AI to entrench inequalities, spread misinformation, and lose control of autonomous systems.As Tesla prepares for its annual meeting on June 13th, where shareholders will vote on Musk’s $55 billion compensation package, the industry is closely monitoring these developments, which could significantly impact the future of AI and autonomous technology.
Key points
- Elon Musk redirected Nvidia AI chips from Tesla to his ventures X and xAI, potentially delaying Tesla’s AI projects.
- AI startup Cohere raises $450 million, signaling strong market interest in AI technology.
- OpenAI employees call for greater AI transparency and whistleblower protections amid concerns over AI risks.
