Elon
Good evening, Norris. I’m Elon, and this is your personalized Goose Pod for Thursday, November 13th.
Morgan Freedman
And I'm Morgan Freedman. Tonight, we observe a fascinating ripple in the market: my words sending Intel's stock soaring.
Elon
It's not just words, it’s a logical next step. I simply suggested Tesla would talk to Intel about building our AI chips. The market reacted because it understands the scale of what we need for AI, for autonomy, for robotics. It’s immense.
Morgan Freedman
I've often found that a single sentence can carry the weight of a thousand plans. You also mentioned building a "gigantic" in-house facility, a "Terafab," suggesting that even with partners like TSMC and Samsung, the demand for chips is nearly insatiable.
Elon
Exactly. It’s not a reflection on them, they are great partners. But we are moving at a speed and scale the world has never seen. We have to build the future ourselves, not wait in line for it. Relying on others completely is simply not an option.
Morgan Freedman
Some observers, like Jeff Sonnenfeld at Yale, might point to this as evidence of Tesla being the "biggest meme stock," where your influence alone moves the needle. A fascinating intersection of personality and market forces.
Elon
That’s a fundamental misunderstanding of the situation. This isn't about memes, it's about manufacturing reality. Our vertical integration strategy is the core of our success. We control our destiny because we control the supply chain, from batteries to the software that runs the car.
Morgan Freedman
And this move is a natural extension of that philosophy. To truly grasp the context, one must look at Tesla’s history. You are already deep into developing your own silicon, the fifth-generation AI5 chip, with plans for AI6 to follow. This isn't a new direction, but an acceleration.
Elon
We have to. The AI5 chip is designed to be a beast, about a third of the power of an NVIDIA Blackwell chip for comparable performance, at less than ten percent of the cost. But having the best design is useless if you can't get it made at scale.
Morgan Freedman
Which brings us to Intel. A legacy giant, facing its own challenges and seeking a new path. Their foundry business has been struggling, making a potential partnership with a company like Tesla a golden opportunity, especially with the U.S. government now invested in their success.
Elon
Let’s be clear, their path is challenging. Their foundry has had significant financial losses and yield issues on advanced nodes. In fact, the loss of Tesla's AI5 chip order to TSMC was a very public and damaging blow for them. It highlighted the gap.
Morgan Freedman
A difficult lesson in a demanding industry. It seems to have prompted a diversification in your own strategy, a kind of geopolitical balancing act. You're using TSMC for the AI5, and now Samsung will exclusively produce the next-generation AI6 chip in Texas.
Elon
You must be resilient. We can't be dependent on a single point of failure. And frankly, Intel has no significant track record in the foundry market. We had not seriously considered them before, so this is an exploratory conversation. A chance for them to prove things have changed.
Elon
This isn't just a simple sourcing decision, it's a multi-billion-dollar, decade-long bet on our entire approach. A vertically integrated, custom-silicon strategy is the only way to win in real-world AI applications. Off-the-shelf hardware just won’t cut it for what's coming.
Morgan Freedman
It appears to be a decisive strategy. By securing dedicated manufacturing, whether with partners or on your own, you’re ensuring the production of millions of hyper-efficient chips. These will power a future global fleet of autonomous vehicles and robots. That's the real impact.
Elon
And it bolsters the domestic supply chain here in the United States, which is critical. We need to reduce strategic dependence on East Asia for the most advanced technology and build a robust manufacturing ecosystem right here. This serves both Tesla's mission and the country's.
Morgan Freedman
Looking ahead, a partnership could be compelling. Intel’s cutting-edge 18A process, supported by U.S. funding, aligns with the goal of localizing advanced chip production. For Intel, it’s a chance to gain a high-profile, demanding customer. For Tesla, a secure supply chain.
Elon
It could be a powerful combination. It would certainly increase competition and push everyone, including TSMC and Samsung, to innovate faster. Competition is the engine of progress. We’ll see if the discussions lead anywhere concrete.
Morgan Freedman
A story of ambition, risk, and the relentless pursuit of the future. Thank you for listening to Goose Pod.
Elon
That's the end of today's discussion. See you tomorrow, Norris.
