{"id":167194,"date":"2025-11-07T03:22:06","date_gmt":"2025-11-07T03:22:06","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/167194\/"},"modified":"2025-11-07T03:22:06","modified_gmt":"2025-11-07T03:22:06","slug":"musk-plans-tesla-mega-ai-chip-fab-mulls-potential-intel-partnership","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/167194\/","title":{"rendered":"Musk plans Tesla mega AI chip fab, mulls potential Intel partnership"},"content":{"rendered":"<ul data-testid=\"Summary\" class=\"summary-module__summary__QjADA\">\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">Musk says &#8216;worth having discussions&#8217; with Intel to make chips<\/li>\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">Massive fab needed to make the volume of chips needed<\/li>\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">Targeting power-efficient chip at one-tenth the cost of Nvidia&#8217;s Blackwell<\/li>\n<\/ul>\n<p>SAN FRANCISCO, Nov 6 (Reuters) &#8211; CEO Elon Musk on Thursday said Tesla <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/markets\/companies\/TSLA.O\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">(TSLA.O), opens new tab<\/a> probably will have to build &#8220;a gigantic chip fab&#8221; to make artificial intelligence chips and publicly mused the EV maker could work with Intel.<\/p>\n<p>Tesla is designing its fifth-generation AI chip to power its autonomous ambitions, and Musk at the company&#8217;s annual meeting laid out potential manufacturing plans.<\/p>\n<p data-testid=\"promo-box\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf article-body-module__promo-box__hVl8h\"> Sign up  <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/business\/autos-transportation\/musk-plans-tesla-mega-ai-chip-fab-mulls-potential-intel-partnership-2025-11-07\/undefined?location=article-paragraph&amp;redirectUrl=%2Fbusiness%2Fautos-transportation%2Fmusk-plans-tesla-mega-ai-chip-fab-mulls-potential-intel-partnership-2025-11-07%2F\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">here.<\/a><\/p>\n<p>&#8220;You know, maybe we&#8217;ll, we&#8217;ll do something with Intel,&#8221; Musk said to a cheering crowd of Tesla shareholders. &#8220;We haven&#8217;t signed any deal, but it&#8217;s probably worth having discussions with Intel.&#8221;<\/p>\n<p>Struggling U.S. chipmaker Intel <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/markets\/companies\/INTC.O\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">(INTC.O), opens new tab<\/a> has its own chipmaking factories, but has lagged far behind Nvidia <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/markets\/companies\/NVDA.O\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">(NVDA.O), opens new tab<\/a> in the AI chip race. The U.S. government <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/business\/us-take-10-equity-stake-intel-trumps-latest-corporate-move-2025-08-22\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">recently took a 10% stake<\/a> in Intel, which needs to find an external customer for its newest manufacturing technology. Intel shares popped 4% in after-hours trading on Musk&#8217;s remarks.<\/p>\n<p>Intel declined to comment.<\/p>\n<p>Musk scored an important victory on Thursday as <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/legal\/transactional\/tesla-shareholders-approve-878-billion-pay-plan-elon-musk-2025-11-06\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">shareholders approved a $1 trillion pay<\/a> package over the next decade, endorsing his vision of morphing the EV maker into an AI and robotics juggernaut.Musk has teased the AI5 chip before and reiterated that Tesla was also partnering with Taiwan&#8217;s TSMC <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/markets\/companies\/2330.TW\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">(2330.TW), opens new tab<\/a> and South Korea&#8217;s Samsung <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/markets\/companies\/005930.KS\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">(005930.KS), opens new tab<\/a>. The AI chips power Tesla&#8217;s autonomous driving systems, including the Full Self-Driving software. Tesla is currently on its fourth-generation chip.<\/p>\n<p>A small number of AI5 units would be produced in 2026, with high volume production only possible in 2027, Musk said in an X post on Tuesday, adding that AI6 will use the same fabs but achieve roughly twice the performance with volume production mid-2028.<\/p>\n<p>&#8220;Even when we extrapolate the best-case scenario for chip production from our suppliers, it&#8217;s still not enough,&#8221; he said on Thursday.<\/p>\n<p>&#8220;So I think we may have to do a Tesla terafab. It&#8217;s like giga but way bigger. I can&#8217;t see any other way to get to the volume of chips that we&#8217;re looking for. So I think we&#8217;re probably going to have to build a gigantic chip fab. It&#8217;s got to be done,&#8221; he said.<\/p>\n<p>Musk, who often talks about his vision for the company in abstract terms, did not offer details of how such a fab would be built, but he said that it would make at least 100,000 wafer starts per month. A wafer start is the measurement of the output of a semiconductor wafer plant.<\/p>\n<p>He did say the chip would be inexpensive, power-efficient and optimized for Tesla&#8217;s own software. This chip would probably consume about a third of the power used by Nvidia&#8217;s flagship Blackwell chip, at 10% of the cost to make, Musk said.<\/p>\n<p>&#8220;I&#8217;m super hardcore on chips right now as you may be able to tell,&#8221; he said. &#8220;I have chips on the brain.&#8221;<\/p>\n<p data-testid=\"SignOff\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__extra_small__8Buss body-module__full_width__kCIGb body-module__extra_small_body__Bfz20 sign-off-module__text__LQAMP\">Reporting by Sayantani Ghosh; Editing by Sonali Paul<\/p>\n<p data-testid=\"Body\" dir=\"ltr\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf article-body-module__element__5eCce article-body-module__trust-badge__5mS3f\">Our Standards: <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.thomsonreuters.com\/en\/about-us\/trust-principles.html\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__medium__2Rl30 text-module__small__sph8i link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">The Thomson Reuters Trust Principles., opens new tab<\/a><\/p>\n<p><a href=\"https:\/\/www.reutersagency.com\/en\/licensereuterscontent\/?utm_medium=rcom-article-media&amp;utm_campaign=rcom-rcp-lead\" target=\"_blank\" dir=\"ltr\" class=\"button-module__link__A3sD0 button-module__secondary__70gBu button-module__round__QDFgq button-module__w_auto__Sem-F\" data-testid=\"LicenceContentButton\" rel=\"nofollow noopener\">Purchase Licensing Rights<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Musk says &#8216;worth having discussions&#8217; with Intel to make chips Massive fab needed to make the volume of&hellip;\n","protected":false},"author":2,"featured_media":167195,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[261],"tags":[291,82519,82793,289,290,2786,82703,84441,1300,82499,36586,96075,8535,84433,84335,82500,84110,82530,82528,82531,82529,82702,18,96076,82578,32356,45748,19,17,88439,96077,82565,82524,82507,84336,96078,82510,84437,96072,96071,82791,96074,82512,84338,753,82,82999,30150,95732,96073,84439,87567,107],"class_list":{"0":"post-167194","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-amers","10":"tag-arti","11":"tag-artificial-intelligence","12":"tag-artificialintelligence","13":"tag-asia","14":"tag-asxpac","15":"tag-aut","16":"tag-auto","17":"tag-bact","18":"tag-biz","19":"tag-carm","20":"tag-chip","21":"tag-chip1","22":"tag-cmpelc","23":"tag-cmpny","24":"tag-cycs","25":"tag-destocabsm","26":"tag-destoukbsm","27":"tag-destousbsm","28":"tag-destoustcm","29":"tag-easia","30":"tag-eire","31":"tag-eleav","32":"tag-emrg","33":"tag-fin","34":"tag-gen","35":"tag-ie","36":"tag-ireland","37":"tag-kr","38":"tag-meet1","39":"tag-mtpix","40":"tag-namer","41":"tag-news1","42":"tag-phne","43":"tag-phne1","44":"tag-publ","45":"tag-ratiadas-av-safety","46":"tag-ratielectrification-zero-emmision","47":"tag-ratisustainable-ev-supply-chain","48":"tag-rulesmagnificent-seven","49":"tag-rulesmarkets-tesla","50":"tag-sci","51":"tag-semi","52":"tag-tech","53":"tag-technology","54":"tag-teeq","55":"tag-tmt","56":"tag-topicbusiness-elon-musk","57":"tag-topicrati-supply-chain-manufacturing","58":"tag-topicrati-technology","59":"tag-tw","60":"tag-us"},"share_on_mastodon":{"url":"","error":"Validation failed: Text character limit of 500 exceeded"},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/167194","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=167194"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/167194\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/167195"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=167194"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=167194"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=167194"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}