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Musk Floats Intel Partnership for Tesla’s Next-Gen AI Chips, Citing Need for a Gigantic Fab

Musk said current manufacturers cannot meet Tesla’s projected chip volumes, prompting exploration of a dedicated facility capable of about 100,000 wafer starts per month.

Overview

  • Tesla has not signed any agreement, and Intel declined to comment on the possibility of working together.
  • Intel shares rose following Musk’s remarks at Tesla’s shareholder meeting, including a pop in after-hours and gains in early trading.
  • Tesla outlined a chip roadmap with limited AI5 output in 2026, high-volume AI5 production in 2027, and AI6 volume by mid-2028.
  • Musk said Tesla’s AI5 is intended to be far more efficient and cheaper to manufacture than Nvidia’s Blackwell, describing the claims as roughly one-third the power at 10% of the cost.
  • Tesla currently uses TSMC and Samsung but says their capacity won’t satisfy future needs, as Intel expands its foundry push after the U.S. government took a 10% stake this year.