Mar. 14 at 10:31 PM
$TSLA 7 hours ago
"The AI industry is about to run out of chips. The world's largest foundries are maxed out and the demand curve is still going vertical.
Tesla’s TeraFab is a bet on a solution no other company in the world has been ambitious enough to try.... build the chips yourself
Quick math on how big this is:
- Targeting 70% of TSMC’s global output
- 2nm chips. In-house design
- 1/10th the cost of Nvidia Blackwell
- 1/3rd the power consumption
-
$20B capex budget for 2026
- Launchin next week
Elon said on the earnings call that even with all fabs fully booked out, the best-case chip supply projections aren't enough. He said there are zero advanced memory fabs at scale in the US. Literally zero.
So he's building the entire stack. Chips. Memory. Packaging. Energy. All domestic." -Josh Kale
https://x.com/JoshKale/status/2032834112600334787?s=20