Terafab Project Moving At "Light Speed", Tesla Stock Surges

Kind: captions Language: en Tesla stock surged more than 7 and a half% today, up nearly $30 per share. Why? I don't know. And you don't know. And anyone who tells you they know is full of it. And I do mean that. The actual answer to why Tesla stocks up nearly 8% today is because there was some buying activity. There was some selling activity. And the end result was this. As I've said in the past, every time Tesla stock moves any direction, it's simply the result of all the buying and selling activity of all the participants on Tesla stock in the market that day. We can always speculate as to why there was buying and or selling activity, but we can never know. Alon Musk posting this. Congratulations to the Tesla AI chip design team on taping out AI5, AI6, Dojo 3, and other exciting chips in work. This wasn't his only chip related post. He was asked about the most awesome and least awesome things about AI5, getting it done. The best was working with such a great team of AI hardware and software engineers. It was more fun than going to parties on Saturdays by far. least awesome was that we had to make several design concessions to move fast but we were able to finish tape out 45 days ahead of schedule which just for the record is massive previously said there are aiming ideally for a chip design every year roughly so that's about what 12% ahead of schedule a big deal gets a little bit nerdy here with the details but it goes on to say that AI6 with LP DDR6 memory addresses those design concessions and has many new great ideas it will deliver a true doubling of performance over AI5 AI 6.5 will further improve performance over AI5. Note both chips have around half the trip AI computation accelerators dedicated to SRAMM. So this is the bottom line. Effective memory bandwidth is an order of magnitude greater than DRAM bandwidth for any calculations in SRAM cache. So a massive leap forward. And given that I'm still currently all in on Tesla stock, safe to say all of my chips are currently being bet on these chips. Musk also added he was really on a chip related post bender on X in the last few hours and overnight that every weekend he was working on the chip without exception for over 6 months. So while you were out busy trying to get laid he was ensuring that Tesla's next generation chips get made. Another post AI5 has around five times the useful compute of AI4. He also wrote and thank you to TSMC and Samsung for your support in bringing this chip to production. It will be one of the most produced AI chips ever and Tesla's AI hardware lead reposting this to recruit new talent. We are looking for excellent people to help build our vertically integrated AI stack. Numeric, quantization, hardware simulators, compiler, blah blah blah. You get the point. Please join us at Tesla. Must be posting this super exciting projects ahead. Something something terra. What a great segue. Over on Doomberg, Musk asks suppliers to move at light speed on terraab plan. Let's read the article. Elon Musk's lieutenants have reached out to chip industry suppliers, including who cares what their names are, for his envisioned terra project. Early steps in an audacious and likely arduous no doubt attempt to break into the production of cutting edge chips. Staff, by the way, just to be clear, I mean, this is Doomberg. Don't believe everything you read. We're going to read it and just keep that covered in mind. Staff working for the joint venture between Tesla and SpaceX has sought price quotes and delivery times for an array of chipmaking gear. People familiar with the matter said, of course, people familiar with the matter said anonymously. In past weeks, they've contacted makers of photo masks, substrates, etchers, depositors, cleaning devices, testers, basically all the [ __ ] you need to fabricate chips. According to the people who are [ __ ] and remain anonymous and if what they say is true, should not be saying these things to people in the media, you [ __ ] But hey, let's move on. The Terrafab team also asked chip manufacturing partner Samsung for support. The South Korean company instead proposed allocating more capacity for Tesla at its planned factory in Taylor, Texas. According to the People, the outreach suggests Musk is pressing ahead with Terapab in the face of skepticism from the semiconductor industry. This would definitely be the first time Elon Musk has ever pushed ahead on an audacious ambitious project despite skepticism from an existing industry and the so-called experts. The project, as envisioned, aims to reshape the chipmaking landscape and propel the world's rich Oh, god damn it. Why the [ __ ] does this have to whatever. Moving on. Intel said it will join the Terafab Initiative with its chief executive officer posting a photo of M. Yeah, we saw this at a recent video to Intel's HQ. Now, just to be clear, I suspect that this will have been an incredible win for Intel, Tesla, SpaceX for the chair project likely to have received very generous terms. Intel in fact made a post describing how they were looking forward to working together on the terra project to completely in essence rethink the entire chip fabrication process. As we can see here, Intel proud to jo silicon fabrication technology. They also reiterated the goal of producing 1 terowatt per year of compute which is more than the entire world combined today. They ain't [ __ ] around. Musk's representatives have asked for speedy price estimates while providing minimal information about the products to be made. In one case, they asked a supplier on holiday Friday for an estimate to be delivered the following Monday. Allegedly, Musk wants to move at light speed, the person was told. The Terrafab project, which has a mindboggling goal to supply 1 terowatt of annual computing capacity, is the latest ambitious undertaking by Musk. While Tesla designs its own autopilot FSD chips, as we saw earlier, AI4, AI5, AI5 also going to be going in Tesla's humanoid robots. Musk's companies have never manufactured semiconductors. Yet, he's now proposing to make them at scale, and make them at a scale that would dwarf the world's current capacity. Yeah, this guy does not think small. Starting with a pilot line in Austin that taps Tesla's existing EV factory and infrastructure. The idea is that the chips would be used to support Musk's artificial intelligence business, XAI, a line of humanoid robots, also known as Optimus, and data centers in space. Ambitions that many in the semiconductor industry don't take seriously. They may regret that. The ultimate scale of the project and whether it expands into a single mega site or multiple locations beyond Texas remains unclear. I have a guess there will be multiple locations. Maybe not initially, but it would be really risky, borderline brain dead to be producing that scale of chips all in a single location. If something goes wrong, that level of geographic concentration, really [ __ ] dumb. The project is offering to pay a considerable amount above the quoted figures if suppliers give Terraab priority according to the people. So basically, same day delivery, pay a bit of a premium, fair enough. No fixed orders have been placed as it's not clear what technology will be used or where the chips will be made. But the first step will be construction of a pilot line to process 3,000 wafers per month, which is a [ __ ] ton. The goal is to begin silicon manufacturing by 2029 and then scale up. One of the people, the [ __ ] the anonymous sources said the project would require something like 5 trillion to 13 trillion in capital spending. Although, and this is according to estimates from Bernstein analysts, so make of that what you will. Musk echoing similar concerns in corners of Silicon Valley has said the semiconductor industry isn't ramping up fast enough to produce the chips that AI companies will need. Amazon, Alphabet, and other hyperscalers expect to spend about $650 billion this year alone to build out data center infrastructure. That's already creating a severe crunch in memory chips and is beginning to spill over into AI accelerators. can confirm we're already experiencing a massive shortage. Musk in March outlined plans for the massive operation to build cuttingedge semiconductors for artificial intelligence, robotics, and space forays. In doing so, he would take on the best chip manufacturer in the world, TSMC. Skipping ahead a little bit, a Tesla board member accompanied Musk on his visit to Intel's headquarters earlier this month. In addition to the US chipmakers expertise, Musk has been recruiting people with knowledge of many different facets of chip plant operations from chip design to power management, construction and procurement. And as we saw again today, Tesla AI hardware lead recruiting more people. Musk reposting that they definitely want the best in the business. The project seeks to handle the entire chip manufacturing process from photo mask production to testing and packaging inhouse. Terrafab aims to make AI chips for devices such as robo taxis and Optimus humanoid robots. also seeks to manufacture high powered semiconductors for use in space by SpaceX and XAI. Musk said he expects XAI to use the vast majority of the components. Some will question whether Musk will ever be able to build anything like the Terrafab project he sketched out in Austin. He has accomplished what others believed impossible before, creating a commercially viable rocket business with SpaceX and bringing electric vehicles to the mainstream with Tesla. Yet, he may settle for more modest accomplishments in the chip industry, given the extreme costs and complexity. Imagine this article was written about a young space company back in the day, talking about the extreme costs and complexity involved in the launch industry, or perhaps the truly insane idea of not just starting an automotive business, cuz that's extremely complicated and expensive, but also it happens to be an electric vehicle business. Extremely complicated, extremely costly. Oh, and it's never been done at scale before. Good luck. The Terrafab project is enormous, is complicated, will be expensive. It's serious. It is happening. The goals are real. The ambitions genuine. And as we can see, Musk and the team are moving at light speed. With SpaceX's unbelievable decade plus lead in terms of launch, now is the time to ramp this project. Strike while the iron is hot. There is no other company on the planet, pun intended, that would be able to compete with Terraab, particularly data centers in space. They do not have the launch cost. Even if they did have the launch cost, they can't get much mass to orbit. The incentive for Musk and the team to move on Terraab as fast as [ __ ] possible. Could not be stronger. Grab your popcorn and strap yourselves in. Want more content, early access, bunch of perks? Click the links in the pin comment. AG1 has been part of my daily health protocol for almost half a decade. It's packed full of vitamins and minerals and helps me fill in nutritional gaps while supporting energy, digestion, and immune function. It also has prebiotics and probiotics to promote gut health. I take my health very seriously, and so should you. 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