Musk Considers Tesla-Intel Collaboration on AI Chips
Elon Musk, CEO of Tesla, indicated that the company may need to build a "gigantic chip fab" to produce artificial intelligence (AI) chips. At Tesla’s annual meeting, he publicly suggested the possibility of working with Intel on this effort.
AI Chip Development and Manufacturing Plans
Tesla is developing its fifth-generation AI chip to advance its autonomous vehicle technology. Musk mentioned to shareholders,
“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's Position in the AI Chip Market
Although Intel owns its own chip fabrication facilities, it trails behind Nvidia in AI chip development. Recently, the US government acquired a 10% stake in Intel, which now seeks external customers for its latest manufacturing technologies. Following Musk’s remarks, Intel’s shares rose by 4%.
Shareholder Support for Musk’s Vision
On Thursday, Tesla shareholders approved an unprecedented $1 trillion compensation package for Musk to be paid over the next decade. This endorsement reflects confidence in Musk’s plan to evolve Tesla into a leader in AI and robotics.
Additional Partnerships
Musk previously unveiled the AI5 chip and confirmed partnerships with Taiwan Semiconductor Manufacturing Company (TSMC) and South Korea’s Samsung to produce Tesla’s AI chips. These chips are critical components powering Tesla’s autonomous driving features, including the Full Self-Driving software. Currently, Tesla operates on its fourth-generation chip technology.
Author’s summary: Elon Musk envisions Tesla expanding AI chip production, potentially partnering with Intel and other manufacturers, as shareholders back his ambitious $1 trillion plan for AI-driven innovation.