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Tesla's AI Chip Strategy: Intel Partnership

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This episode provides an overview of a potential, but yet unsigned, partnership between Tesla and Intel regarding the manufacturing of Tesla’s next-generation AI chips. Driven by its growing demand for custom silicon to power its autonomous driving (FSD) and robotics ambitions, Tesla CEO Elon Musk proposed the idea of building a massive internal "terafab" but also mentioned discussions with Intel Foundry as a strategic alternative to secure high-volume production. This move signals Tesla’s focus on its power-efficient AI5 and AI6 inference chips for real-time decision-making, a pivot away from its previous in-house training supercomputer, Dojo, which has been deemphasized. For Intel, securing Tesla as a high-volume client would be a significant validation of its advanced process technologies, while the potential alliance would intensify competition with market leaders like Nvidia, TSMC, and Samsung in the specialized automotive and edge AI chip sectors.

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