Will Tesla BUY Intel To BOOST Terafab?

Kind: captions Language: en huge news. You probably heard about it, but this is actually huge news. That means something much bigger than people understand. And this huge news is that Intel, you probably have heard of Intel, the ugly duckling of chip manufacturers, used to be a great company, by the way, now completely on the sidelines, sidelined by Nvidia, sidelined by Broadcom, sidelined even by AMD. AM Intel completely missing the AI train, completely getting stuck in their CPUs and getting killed by AMD on the G on the CPUs and totally losing out on the GPUs, the AI chips that drive the entire economy at this point. Totally left behind. Still very smart people there, great engineers, even smart CEO. Smart in an engineering sense, of course. A little colorless, a little like, hm, where's the sexiness? You have to compete with Yensen. You have to compete with Lisa. You have to compete with pretty serious people and you're a little bland but very smart person of course. Great engineer. Now they announced this thing. Can you believe it? On the space xxx account. Intel is joining terafab. And you probably have heard about terap. I have a video coming out on it. Terrafab in a nutshell is this. This is literally their website just launched. Terrafab is designed to make us a galactic civilization. Not just multilanetary but galactic. And if you think I'm kidding, I'm not kidding. This is Elon's website. It's about the Kardashev scale. It's about harvesting all the Earth's energy. And that's just type one, but very quickly turning it into a type two civilization. We harnessed harness all the energy of our favorite star, the sun. Sun very healthy by the way. People say it gives you cancer and skin cancer. It's of course true, but it also prevents cancer. So the sun is very healthy for us. That was just a side comment. They wanted for energy. El knows how to do it. It is about shooting satellites into space with solar panels and then utilizing this energy to create the one the one thing for that we have unlimited demand and then can that can generate unlimited monetary financial value because it's underwritten this financial value it generates by unlimited economic value it generates and that is intelligence inference. Intelligence in space. Why in space? because that's where the energy will be. The energy will be because of Space X and Tesla satellites. Here you have the satellite of course that is the new AI satellite mini 100 kW designed right now by SpaceX. Completely trivial to design by the way. A lot of people got this wrong. Yensen Wang even of Nvidia, he's not a space person. He got it a little wrong and said, "Oh, we don't know how to do this." Well, you don't know Yensen. I'm a big Yensen fan. But Yensen doesn't understand this and Elon does. So SpaceX, of course, it takes them a week to design the satellite, and they for sure have already done it. That will be shot into space. There's Tesla Optimus, this is Starship, this is the rocket that makes it all possible to bring down the cost to orbit below 200 kilogram uh $200 per kilogram. Elon talks about $10, but don't listen to Elon for now. Listen to me. Elon is a little out there. We are not getting to $10 for now. We are getting first to $200 per kilogram. And that is the inflection point in my math where this becomes extremely profitable. 60% lower cost than terrestrial compute. All the data center buildouts you have heard about the giant hyperscalers the 670 billion spent by the max 7 or the hyperscalers Meta, Amazon, Microsoft, Google on the buildout on earth this year 670 billion in 2026. What I'm saying, what I'm telling you is their cost will go down, uh, will go up on Earth every year from now because they're using up all the energy in our grid. They're already eating up 7% of the entire United States energy. Let that sink in. That's crazy. What happens next year when it's 14%. What happens if it's 30%. It drives utility cost through the roof. Energy cost through the roof. That's already happening. They're running into a real problem with their buildout. To the rescue comes AI satellite mini of SpaceX and Tesla because once this falls below 200 kilograms per orbit for tonto orbit thanks to Starship which happens probably end of this year Starship version 3 or latest version 4 but probably version three becomes commercial at that moment it's going to be 40% cheaper in my calculation roughly 60% cheaper in my calculation but at a minimum 40% cheaper to build your data centers in space free energy No maintenance, no lease. All you pay for is Starship to transport your stuff into orbit. Now it's cheap. Once that happens, of course, we get into a situation where we need unlimited chips as quickly as possible. Unlimited chips. And that is TerraFap. That is exactly what Elon is preparing Elon and the team to build terra the largest chip manufacturing site on the planet. No pun intended to deliver this thing and make us a Kadesh 2 civilization. First a Kardashe type one. Of course, we are not here at all, but we will get there and then surround the sun with our little satellites. That is why this news is very smart of Intel because if you're Intel, you're a little unsexy, but you're smart and you still have these engineers. You're falling behind. How do you compete with AMD? How do you compete with Nvidia? Of course, how do you compete with Broadcom who are absolutely killing it with custom chips for Google, for Amazon? They're building the Amazon chips and the Google chips who want to cut out Nvidia a little bit more. What do you do if you're him? you're sitting there like, "Okay, what do we do now?" And I think this is a very interesting partnership because as I said before, right now Tesla is partnering with Samsung on the AI5 chip, AI6 chip. That's the precursors for the Terrafap. They're building their own FAP in Texas with Samsung. They're also working with TSMC. Here's the difference. When you think about all the crazy stuff I just told you, this is not anymore a business, by the way. This is not even an economy. We are talking about the fundamental scaffolding of a civilization of the pioneer civilization at least the physical scaffolding of the civilization. This is far bigger than any business. This is far bigger than the United States. This is far bigger than anything. And so you want to think very strategically about security and supply chains. And Samsung is South Korean. TMC is Taiwanese subject to potential attack by China. Elon is in America. Elon has a good grip of the American government at this point together with his friends. This is not a political you know commentary here but of course the US government is falling into the hands of Silicon Valley very soon if it has not already fallen into these hands. So by 2028 it's going to be game over to 32 we will live in some form of snow crash. Look up snow crash the science fiction novel uh future where the corporations just control the entire thing. Inevitable. We have to figure out how we make this all work for us. But it's not a debate if it happens. It's a debate what we do about it. So Elon understands this and he wants of course onshore onshore supply chains, onshore talent and Intel is an American company. That's my take on it. I think Intel is a very interesting target also for acquisition at some point. It's only $250 billion market cap right now and it's struggling and it has huge assets in my opinion and knowledge and brand and you know all kinds of things and they know how to do all the things that Tesla can't do in SpaceX. They can actually manufacture massive amounts of chip factories and fabs. They have it all vertically integrated. They just don't have the the money and the goals and the blueprints of the chips and the delivery systems. That's all Tesla and SpaceX of course. So it is a very interesting match. It makes total sense that this partnership starts now and it makes total sense that this partnerships become much bigger if Intel is smart enough to truly align the company towards Tesla and become a part of Tesla. If Intel is smart and cunning, they basically control the existing markets and then go all in to Tesla and SpaceX and try to get acquired at some point. That would be smart. That is their lifeline. That is not just their lifeline. That is how they become bigger than everyone else. It's their only chance. It's a very good chance because they're strategically perfectly positioned to become the core the actual hardware manufacturing core for the core chip capability of Tesla's basics whatever we call the company once it's merged it's going to be very interesting very strategic move I think people don't see how big this is there right now see oh it's a little partnership no think strategically what chip manufacturing company is smart and powerful enough to actually do this for Tesla and at the same time in a strategically weak spot to be acquired and merging with Tesla. Not Nvidia. Nvidia is the world's largest company. Not TSMC that's owned by the Chinese very soon. Not Samsung. This is a giant company that is a strategic asset for South Korea. All of them are blocked. TSMC doesn't work. Samsung doesn't work. Nvidia doesn't work. Broadcom is on a total killing spree and run and it's in the hands of the competitors of Tesla, Amazon, Google. So, they're not going to do anything. AMD maybe. But when you compare AMD to Intel, Intel is the better choice because AMD is relatively much stronger than Intel. You don't want to have you don't want strong, you want weak. You want weak with great capabilities. So Intel is the perfect match to become a part of Tesla in my opinion. Maybe too early to talk about it, but Elon will do whatever it takes to be efficient and fast. And I think he wants this capability at some point inhouse. I think Elon understands better than most that the manufacturing of chips will become one of the central pillars of future empire of the future Elon empire because what do you need? You need massive infinite scale solar production. You need of course Starship. Starship is the the crucial asset. You will need Optimus and then you're off to the races. But you need chips and you need to build chips on Earth. You need to build chips on the moon. You need to build them all over the place. You need extremely strong chip manufacturing capabilities. It's the absolute centerpiece. The centerpiece is how do we deliver these satellites to space and how do we build the satellites? And the satellites are little solar. That will be a scaling issue with Tesla and SpaceX, but mostly Tesla. It will be manufacturing the stupid little radiators which is completely trivial. It will be the maintenance of all that stuff which is Optimus. But then it will be about the chips. There is no chip capability right now with SpaceX or Tesla XAI. So watch out for it. This is a missing piece of the entire equation. I would not be surprised if Intel ends up as Tesla at some point in the future. Or maybe they do something else. Maybe they suck out the talent at some point. Who knows? Maybe they buy out a piece. I don't think they need to buy the entire company, but maybe they do. So, that is my take on the situation. Very interesting news. Check out the Terrafab. We have a video coming up that covers this whole website that ends, I think, with the coolest thing. That's not the coolest thing. But here you see the mini AI satellite 100 kow. It already shows exactly my equation but without my numbers. I had a video on this. I will update the video on the model. You see it on pioneerlands.org and the Pioneer Academy where we have a dedicated space section now in Pioneerlands. Go to pineelance.org and you will see it right away. We have some very cool things. They're happening. We have the best teams now coming together in Pioneer Lens to actually model all that stuff out and predict the future scenarios and trajectories of these things so we can execute on stocks and all other things. But that's what I wanted to show you here to wrap up the video. Luna mass drivers that is the strategic next goal. get to the point to build a moon base, moon base alpha to actually manufacturing chips on the moon. Massively more material available than we can get on Earth. No humans in the way, no environmental preview boards, at least for now. The mass driver will then help shoot that stuff into space, which is very space. It doesn't have an atmosphere and has very limited gravity. I think six times less than Earth or something. And this is the mass driver, I think, magnetically driving these things out. I'm not really sure how it works. And it shoots all the satellites into space. It's like pretty awesome. Admit it's awesome. So, accelerates on this magnetic acceleration thing. It's probably like like a mag left. Uh, it shoots the mass out into space with very very little energy required. This D3. So there are these chips on board. They manufacture them on the moon on the lunar surface. Intel maybe and they move up into space and turned into satellites. They can also be delivered to Earth of course very easily from there. That's a lot of lights on the moon. And that is our future that we will get to in the 2030s already, which is totally nuts. I hope that was interesting and see you tomorrow.