Elon Musk said Tuesday that he expects Tesla and xAI will continue buying chips from semiconductor giants Nvidia and AMD, and possibly others.

Musk’s artificial intelligence company, xAI, which now owns X (formerly Twitter) has already installed 200,000 GPUs at its Colossus facility in Memphis, the Tesla CEO told CNBC’s David Faber on Tuesday. XAI is also planning a 1 million GPU facility outside of Memphis, Musk said. 

He did not specify how many chips the company had already ordered and by which date they may be installed.

“A few years ago, I made a very obvious prediction, which is that the limitation on AI will be chips,” he said.

At his autos business, Tesla, Musk said the company’s Dojo supercomputer in Buffalo, New York is already used for training its Autopilot and Optimus robotics systems.

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