Tesla AI 5 CHIP (CHIP)
Tesla’s TeraFab officially begins TODAY. This is make or break for possibly the whole AI industry Elon’s trying to build a 2nm chip fab from scratch. The most advanced process node on Earth. Only 3 companies can do this. TSMC spent $165 billion on their Arizona cluster alone. It took decades of institutional knowledge. Tesla has manufactured zero semiconductors. Ever. But they don’t really have a choice choice: Even in the best-case scenario where TSMC, Samsung, and Micron all max out production for Tesla, it’s still not enough chips for the Optimus and Cybercab roadmap…let alone the rest of the industry The AI5 chip this fab is designed to produce has 50x the compute of AI4. They need 100-200 billion of them per year. No foundry on the planet can commit to that volume on Tesla’s timeline. If it works, Tesla becomes one of maybe 4 entities on Earth that can produce frontier AI silicon in-house, and the only one that also builds the robots and cars. It would be game over
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