Musk Considers Tesla-Intel Collaboration for AI Chip Production
Elon Musk, CEO of Tesla, announced the company may need to create "a gigantic chip fab" to manufacture AI chips, hinting at a possible partnership with Intel. This was revealed during Tesla's annual shareholders meeting, where Musk addressed the company’s ambitious plans for autonomous driving technology.
Potential Intel Partnership
Musk spoke to a receptive crowd and said,
“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 owns its own chip fabrication facilities but has fallen behind Nvidia in the AI chip market. Recently, the U.S. government acquired a 10% stake in Intel, which is seeking external customers for its latest manufacturing technology. Following Musk’s comments, Intel’s stock rose by 4%.
Tesla’s AI Chip Development
Tesla is currently designing its fifth-generation AI chip, which aims to enhance its Full Self-Driving (FSD) capabilities. The company is continuing partnerships with Taiwan’s TSMC and South Korea’s Samsung for chip production. These AI chips are central to Tesla’s autonomous vehicle systems.
Shareholder Support for Musk’s Vision
On Thursday, Tesla's shareholders approved a $1 trillion pay package for Musk over the next decade, signaling strong backing for his strategy to transform Tesla into a leading AI and robotics company.
Summary
Musk’s remarks suggest Tesla is preparing for significant investment in AI chip manufacturing, potentially with Intel, to advance its autonomous driving technology and broader AI ambitions.
Author’s summary: Elon Musk signals a major expansion into AI chip production, possibly partnering with Intel, backed by shareholders’ approval of his ambitious pay and company vision.