Musk Plans Potential Tesla-Intel Partnership
Elon Musk, CEO of Tesla [finance:Tesla, Inc.], suggested that the company might build a "gigantic chip fab" to produce artificial intelligence (AI) chips and hinted at a possible collaboration with Intel [finance:Intel Corporation].
Details from Tesla's Annual Meeting
At Tesla’s annual shareholder meeting, Musk discussed the development of the fifth-generation AI chip to support Tesla's autonomous driving goals. He 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's Position in AI Chip Manufacturing
Intel owns its chip manufacturing facilities but has fallen behind Nvidia in the AI chip market. The U.S. government recently acquired a 10% stake in Intel, which is motivated to find partners for its advanced manufacturing technology. Following Musk's comments, Intel's stock rose by 4%.
Shareholder Approval and AI Ambitions
On the same day, Tesla shareholders approved Musk’s $1 trillion compensation package for the next decade. This endorsement supports Musk's vision of transforming Tesla into a powerhouse in AI and robotics.
Other Partnerships and Current Chip Development
Musk reaffirmed Tesla’s existing partnerships with Taiwan’s TSMC and South Korea’s Samsung for AI chip production. These chips power Tesla's autonomous systems, including the Full Self-Driving software. Tesla is currently using its fourth-generation AI chip.
Summary: Elon Musk envisions Tesla expanding AI chip manufacturing, possibly partnering with Intel, as the company advances its autonomous vehicle technology and strengthens its AI-driven future.