Why Terafab Will SKYROCKET Tesla And SpaceX Stock

Kind: captions Language: en We had amazing and huge news this week with Terraap getting into the next phase and SpaceX and Tesla reporting that they are investing 16.8 billion which we already knew. But they are also now picking the exact location of this amazing thing that is being built that will 50x the entire output of earth in terms of semiconductors or more specifically GPUs and that is a very very big deal as we already know but that now it's actually clear where this thing is being built and that is a very important step into making this crazy vision of Elon actually real and why does it matter for the AI frontier this week in our weekly brief that you watch right now? Why is it so important? Because a lot of people thought this is just fantasy. This is just a crazy Elon statement that is not going to really become true. And now with that decisive step, this becomes true and basically outlines the trajectory of humanity and the trajectory of the AI buildout. That this is not a bubble. At least serious steps are being taken that show that the smartest minds on the planet don't believe it's a bubble and that AI is here to explode and actually initiate the singularity. Some people say, including Elon, we are in the middle of the singularity. I'm saying the same thing and the singularity is something you better watch because it's going to change everything. So you see here the tariff app. This is of course not a real video. This is a CG generated video by SpaceX that shows how this thing is going to look like and the scale is absolutely stunning. So we are going to look into this a little bit more to understand the implications. SpaceX and Tesla greenlighting tariff application in Grimes County, Texas for for $16.8 billion investment. Of course, it's going to be much much much more money than that. This is just the initial the initial investment. Here you see the size of this whole thing. You see in the middle left the US Pentagon used to be the largest building on Earth. Not anymore. Mall of America. Pretty big thing. Do you see the Apple here? You see the Apple headquarter. If you have ever been to Sunnyvale, this thing is also very, very large when you stand in front of it. So, Giga Texas, 10 million square ft, nearly four times the size of Apple, uh, Apple's headquarter. And now look at Terrafab. Absolutely stunning. Giga Texas, one of the largest buildings on Earth. Probably the largest building on Earth. I'm not totally sure right now, but everything gets dwarfed by the scale of Terraab 100 million square ft dedicated only to producing GPUs, graphic processing units. Of course, a misnomer at that point because it's being used to produce to manufacture intelligence at scale. And the size of this thing is truly stunning. Also in terms of output, we would generate 50 times more semiconductors GPUs than we currently manufacture across the entire planet. That includes Nvidia, AMD, Intel, the Chinese, Samsung, and so on and so forth. So what does that mean? It means it means that Elon Musk who is of course the mastermind behind this plan places an enormous bet an enormous bet. I mean look at how enormous you see it in the graphic on a singular trajectory and the trajectory is that compute needs. Some people say we in an AI bubble because you see Amazon, Google, Microsoft, look at the earnings, look at the capex, roughly 200 billion each. Meta 150 45 billion nearly a trillion dollars in 2027 invested into the buildout of the AI clouds of the four hyperscalers. Some people say that's a bubble, but when you look at Elon's plans and this Terra app, he believes it's not a bubble. It is a tiny little step into an enormous exponential trajectory that will unfold over the next 3 to four years. So, this is all now. It's not in the future. It is now. They're starting the construction now. And I project 3 to four years before it turns out real stuff. Maybe three years. So he's betting on this not just being a little blip, not just being a little bubble, not just being a little overinvestment, but a dramatic dramatic underinvestment compared to what we actually need. So this is why we have to do this every week and look at the AI frontier because we're collecting data points here from the smartest people in the world. what actually happens in AI to project these trajectories accurately because you know that the current narrative out there are multiple narratives out there one narrative says I just had a conversation with a smart friend who believes it's all a bubble he believes it's overhyped and that in three years we all back into our jobs everyone is just back to what they're doing everyone realize well that was just a hype cycle in the end people have to go to work. People have to save money. People have to do all these things. Once the hype is over, we realize it's back to normal. That is the one narrative about AI. The other narrative is this time is actually different. This time is different. We are on an exponential trajectory to churn out exponentially more powerful intelligence that becomes very soon artificial general intelligence and very soon after that artificial super intelligence which will push humanity to the brink with tasks and complexities and problems that no one can even anticipate right now. We will have the time of our lives but also run into the risks not just of our lives but of the ultimate risks of civilization while being granted the power of gods. Hey on this channel we do something very important. We deeply analyze, understand, and predict capital, AGI, and politics. Not just to beat the markets and make a lot of money, even though that's important, but also to build a new society and make the future good for all of us, the pioneers. If you want to help me on this journey, you can do that by doing a very simple thing. Like and subscribe. It helps me a lot. Thank you so much for your support. And let's get back to the video. that these are the two narratives and within 2 years everyone will agree on either one of them. There will be no human in 2028 and 9 who will doubt either one of them because we will have clarity and you know that I'm falling squarely into the second set of people. I believe this is different because I use these things every day. I connect the dots. We use it in pioneer lands. We have drought near AI agentic systems for all people in pioneer lands that they can use. We see it internally how these things develop. And it's not about what AI can do today even though that is very impressive. It is about what it was able to do one year ago when able to do a quarter ago and how these things exponentially develop. And then we draw the trajectory and then we realize that next year will be exactly as I predicted in 2025 will be absolutely nuts. And then we look at also the behavior of the smartest people with the most knowledge about these things from the Google leadership to Microsoft leadership to Meta leadership to Amazon leadership to Yensen at Nvidia even though of course he's very biased because he's producing all that stuff but Google Microsoft Meta and Amazon they're not biased they're absolutely not biased they are the people who have to make these purchasing decisions and they decided to invest a trillion dollars in the buildout because they're measuring everything here and they see the demand is going through the roof. And then we look at Elon, of course, he's making these investment decisions that are stunning. Quite frankly, absolutely stunning. And that all tells us that 100% of the smartest people on Earth with the most responsibility, the most capital to deploy all agree. and they agree that this time is different and that this thing will be crazy and that they want to get ahead of it and that Elon sees and predicts an absolutely insane and massive shortage of GPUs, of memory, and of our ability to feed the infinite demand for AI. It's not just my opinion. It is exactly what you see here in the actions taken by him. Here's another view on Terraab. The Optimus factory and Giga Texas right next to it. Look at this. I don't know if that's actually accurate that this thing would be placed exactly here, but it's going to be placed somewhere very close. They started construction, so you might be able to project it a little bit and it won't look like this. Of course, in the end, it will be a little different, but it's probably not going to be placed here. It's just for comparison. Optimus Factory, Giga Texas. You see how they get dwarfed by this thing? Now 1.5 hours outside Houston. So there we have the answer by the way. So it's not there. This is right next to Austin. So it's somewhere in Grimes County. 1.5 hours outside of Houston. Initial prototype fabrication operations are stationed in Austin, Texas near Texas existing Gigafactory in Texas. So we have a prototype fabric fabric fabrication operations thing being built. And of course you know how it works, right? You design these chips, you do fabrication of the chips, you do memory, you do then packaging and then you deploy them into power. So the packaging everything that is the whole idea of this thing that you actually integrate and right now it is not integrated right if you go to TSMC and you order these things packaging manufacturing all these things are of course not integrated into a singular site and so one of the central vertical integration innovations here is that the entire GPU manufacturing maybe all the way into putting them into Optimus robots everything is integrated here which will lead to massive time cost and other reductions. So right now SpaceX is of course relying on Nvidia systems and the next step will be Terrafab brings in their chip supply and allows massive massive buildout. So Musk of course as always little hyperbole here but we love it. Terraab Texas will be the largest and most valuable building on earth by far and it will be stunningly beautiful. That is what Musk is saying. So [snorts] that is the news here in the weekly brief that you can find on pioneerlands.org. By the way, we decided to make the weekly brief accessible for everyone. So you don't even need to be a citizen, at least not for the video. You can watch the whole video. It's on pioneerlands.org. You should go there and check it out. But in the weekly brief today for the AI frontier, this is the AI frontier weekly brief. We also have one for capital markets there and we have one for politics where we discuss Taka Carlson's 10 points which is very interesting. But in the weekly brief in AI, we are going to go through deepseek versus open AI because there's something very interesting happening. The week before OpenAI was forced, I think was forced, but who knows? but lowered prices by 80% for one of their core models. That is a big big reduction. And the funny thing is the week after this week, last week we are using deepseek a lot, right? I'm I'm kind of on an operational level, we use the Chinese models a lot in our in-house or pioneer lens intelligence agentic system. and Deep Seek sent actually out a message that we will pay more. So the frontier model in the United States lower the price 80%, the Chinese, we don't know yet how much they increase the prices. So we see a convergence. We are going to talk about that. Very interesting stuff. We see Astra open EIS next model Fable level or higher uh is confirmed and we don't know if they release it next or this week or next week. It's a little unclear but it is in use. It is finalized and now it's going through some probably government related checks with the US government before it's being released. Then in the news we have Google's AI brain drain. There is a huge shift in Google going on and we have a very specific take on what is happening there. Why Google is doing that? What it means if they are retreating from the frontier models there are all kinds of interesting rumors but also facts on the ground. Then we see token prices converging as in the first point but also infrastructure bottlenecks. We have to talk about that for the buildout of AI and then we go into the bottom line. To see the full weekly brief, go to pioneerlands.org. Every single week, we will cover the most exciting and important news from the AI frontier, from Grock, Anthropic, CLBT, and the Chinese models, of course, so you are up to date and understand how the world is changing very rapidly right now. Also, by the way, we have a capital and stocks weekly update and we have a political weekly brief now, all on pinelance.org. So, I hope to see you there.