Musk Considers Tesla-Intel Partnership for AI Chip Production
Elon Musk, CEO of Tesla, announced that the company may need to build "a gigantic chip fab" to manufacture artificial intelligence (AI) chips. At Tesla’s annual shareholders meeting, he also suggested the company could collaborate with Intel.
Potential Collaboration with Intel
Musk addressed the crowd, saying,
“You know, maybe we’ll, we’ll do something with Intel. We haven’t signed any deal, but it’s probably worth having discussions with Intel.”
Intel possesses its own chip fabrication plants but has fallen behind Nvidia in the AI chip space. The US government recently acquired a 10% stake in Intel, which seeks external customers for its latest manufacturing technology. Following Musk's comments, Intel's stock rose by 4%.
Tesla's AI Chip Ambitions
- Tesla is designing a fifth-generation AI chip to advance its autonomous driving capabilities.
- The new AI chips will support Tesla’s Full Self-Driving software and autonomous systems.
- Tesla currently uses a fourth-generation chip and partners with TSMC (Taiwan) and Samsung (South Korea) for manufacturing.
Shareholders Back Musk’s Vision
On Thursday, Tesla shareholders approved a $1 trillion pay package for Musk covering the next decade. This supports his plan to transform Tesla into a leader in AI and robotics technology.
Author’s summary: Elon Musk is exploring a major AI chip factory for Tesla, possibly in partnership with Intel, propelled by a recent shareholder endorsement of his ambitious $1 trillion plan.