Elon Musk revealed Tesla's new AI supercluster, Cortex, which comprises 100,000 Nvidia GPUs and is being built at the Giga Texas factory to enhance self-driving technology. This ambitious project will require significant energy, with initial cooling needs equivalent to 40,000 A/C units, raising concerns about Texas's energy grid reliability. Meanwhile, Tesla's AI data center in Palo Alto has strained local utility resources, leading to infrastructure changes and increased electricity costs for residents. Musk has redirected some GPUs from Tesla to his other venture, xAI, which raised initial concerns but now aligns with Tesla's plans to expand its AI capabilities. The energy demands of Tesla’s AI initiatives reflect a broader trend, where AI technology is expected to significantly increase global electricity consumption, leading to challenges in meeting future energy needs. Bill Gates noted that this surge in demand necessitates a massive build-out of additional resources to support data centers and AI operations.