Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk stated on Monday that the EV maker would have had to spend twice as much on buying AI hardware from Nvidia Corp. (NASDAQ:NVDA) to train its systems if it weren’t for the company’s AI4 chipset.<h2>Musk Touts $10 Billion Nvidia Spending</h2>Musk also shared that Tesla was making close to two million cars annually and growing, all of which boast Tesla's &#34;dual SoC AI4, 8 cameras, redundancy in steering actuation and others systems, high bandwidth communication, etc.&#34;&#34;By the end of this year, Tesla will have spent ~$10B cumulatively just on Nvidia hardware for training,&#34; the billionaire said.Musk also added that while Nvidia was providing &#34;helpful tools&#34; to automakers, the industry as a whole is &#34;doing very little&#34; to develop self-driving technology.<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div><blockquote>Nvidia is providing helpful tools to the automotive industry, but the automotive industry is doing very little on their own By the end of this year, Tesla will have spent ~$10B cumulatively just on Nvidia hardware for training. We combine that with our own AI4 chips for…— Elon Musk (@elonmusk) January 6, 2026</blockquote></div></figure><h2>Not A Competition For Tesla</h2>On Tuesday, user @jamesdouma shared his thoughts on Nvidia's technology and whether it could pose a challenge to Tesla's Full Self-Driving (FSD) system, stating that it isn't possible and providing an in-depth analysis of the technology.&#34;There is no scenario in which a company building on top of this new development kit will even slightly dent Tesla’s Robotaxi market opportunity,&#34; the user said.<h2>Musk On Nvidia's Alpamayo</h2>Musk had earlier shared that the Alpamayo system could become competitive with Tesla's FSD in the next 5 or 6 years, but that number could stretch further, according to the billionaire. He also shared that the &#34;actual time from when FSD sort of works to where it is much safer than a human is several years.&#34;The Tesla CEO previously stated that the technology could face challenges with distribution, which was also seconded by Tesla's AI Chief, Ashok Elluswamy. However, Musk ultimately wished success for Nvidia's self-driving efforts.<figure class="wp-block-image size-large"></figure>Tesla scores well on the Momentum and Quality metrics, but offers poor Value. It also has a favorable price trend in the Short, Medium, and Long term. For more such insights, sign up for Benzinga Edge Stock Rankings today!Price Action: TSLA declined 4.14% to $432.96 at market close, but it gained 0.46% during the after-hours session, according to Benzinga Pro data.Check out more of Benzinga's Future Of Mobility coverage by following this link.Photo courtesy: Shutterstock

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Elon Musk expressed frustration over the auto industry's lack of AI investments while discussing Tesla's planned $10 billion expenditure on Nvidia hardware. He noted that without Nvidia's AI4 chipset, costs would have doubled. Musk highlighted Tesla's production of nearly two million cars annually, equipped with advanced AI technology. He criticized the automotive sector for minimal self-driving technology development, despite Nvidia's support. Musk also commented on the competitive landscape, suggesting Nvidia's Alpamayo system could rival Tesla's Full Self-Driving in several years. Tesla's stock saw a decline of 4.14% but gained 0.46% in after-hours trading.

- Tesla CEO Elon Musk indicated that the company would have needed to spend twice as much on Nvidia's AI hardware without Tesla's AI4 chipset, expecting a cumulative expenditure of around $10 billion by year-end.  
- Despite Nvidia's valuable tools for the automotive industry, Musk criticized the sector for its limited progress in self-driving technology, while others believe Nvidia's developments pose no threat to Tesla’s market.  
- Musk also noted that Nvidia's Alpamayo system may compete with Tesla's Full Self-Driving in several years but expressed optimism for Nvidia's efforts.

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Elon Musk Says Tesla's Planned $10B Spend On Nvidia Hardware Would Be Double If Not For This Reason, Laments Lack Of AI Investments In Auto Industry