EV giant Tesla Inc (NASDAQ:TSLA) is setting up giant fans at its gigafactory in Texas as part of its expansion initiatives as it gears up to bring 50,000 Nvidia Corp. GPUs in-house to ramp up its AI efforts, drone footage of the factory reveals.

What Happened: Drone footage of the gigafactory shared by Brad Sloan on YouTube shows gigantic fans being installed at the factory. The footage, Sloan says, was captured in the early hours of Tuesday.

The company is completing the south extension of its gigafactory in Texas and it will house 50,000 of Nvidia's GPU chips designed specifically for AI applications once complete, Tesla CEO Elon Musk said earlier this month. The big fans are seemingly part of the cooling system at this new data center.

Musk's Wordplay: The company CEO on Wednesday responded to the drone footage himself and said, "We would be nothing without our fans." The CEO is seemingly referring to both the equipment being installed and the company's huge fan base.

We would be nothing without our fans

— Elon Musk (@elonmusk) June 20, 2024

Expansion At Giga Texas: While Giga Texas covers 2,500 acres along the Colorado River with over 10 million square feet of factory floor, Tesla still needed more space to install the Nvidia GPUs, Musk previously said. Each GPU requires significant power and cooling, thereby mandating an expansion of the factory.

The south extension of the Texas gigafactory which is under construction is custom-built for heavy power computing and has huge cooling towers, the CEO explained.

Tesla's AI Budget: Earlier in June, Musk revealed that Tesla would spend $3 billion to $4 billion this year on hardware purchases from Nvidia and a majority of its remaining $10 billion AI-related budget internally. Within the company, Tesla will spend on AI inference computers, the sensors present in its cars, and its Dojo supercomputer, Musk said.