Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:01):
Hey everybody. Welcome back to the Elon Musk
Podcast. This is a show where we discuss
the critical crossroads that shape SpaceX, Tesla X, The
Boring Company, and Neurolink. I'm your host, Will Walden.
Just when you thought that Elon Musk couldn't shock you anymore,
(00:23):
Tesla has just locked in a majorchip deal with Samsung, which
deepens Elon Musk's effort to reshape his companies around AI
as opposed to Tesla vehicles. Now they signed a new contract
with Samsung for next Gen. chips.
According to multiple reports and also confirmed by Samsung in
(00:43):
a public statement, this is the first time that Tesla has
publicly committed to a major external chip supplier for
upcoming AI and autonomous driving hardware.
So why is Tesla turning to Samsung for chips though?
Because Elon Musk says he's in founder mode again, and he's
directing his energy toward whathe views as Tesla's next crucial
(01:04):
phase, transforming it into a dominant force in AI.
Tesla has relied mostly on its in house Full Self driving
hardware, but this new deal indicates the company needs more
specialized silicon to keep pacewith its software rivals.
Now, Samsung confirmed it will manufacture Tesla's new chips
(01:25):
using its four nanometer fabrication process, which is
one of the most advanced in the world.
Samsung's 4 nanometer tech allows for higher transistor
density, better power efficiencyand improved performance.
Now, the chips will be billed atSamsung's factory in South
Korea, and Samsung said the chips are part of Tesla's
Hardware HW-5 Hardware 5 platform, the next generation
(01:49):
after the currently shipping HW-4.
The powers Tesla's latest Autopilot and FSD systems.
Now, Tesla hasn't provided a timeline for when HW-5 will
launch, but internal documents show that it is being designed
to handle larger AI workloads needed for Tesla's Robotaxi
platform and Optimus humanoid robot.
(02:11):
By tapping Samsung's chip makingdivision, Tesla will also bypass
the oncoming backlog faced by TSMC, the world's leading chip
manufacturer, which handles contracts for Apple, NVIDIA, and
AMD. Now, Musk has publicly expressed
frustration with Nvidia's supplychain, specifically calling out
the limited availability of each100 GPU's.
(02:33):
While Tesla uses NVIDIA hardwarein his Dojo supercomputing
projects, the custom chips from Samsung will give Tesla more
control over its FSD road map. This aligns with Musk's recent
pivot to centralized Tesla's AI stack around vertically
integrated technology. Now, Samsung stock rose nearly
5% on news of the Tesla contract, making it one of the
(02:56):
best performers in South Korea'sKospi index on Monday.
Investors viewed the deal as validation of Samsung's
aggressive mood into foundry services work, a piece directly
with TSFC. Now.
Samsung has struggled to win high profile contracts outside
of mobile and consumer electronics, and Tesla offers
the company a powerful new customer and AI now.
(03:19):
Elon's decision to secure external chip supply also shows
that Tesla's growing hardware needs.
Then it shifts from cars to infrastructure and AI.
In recent months, Tesla has scaled up his Dojo
supercomputer, which processes massive data sets for FSD
training. Tesla said last year it planned
to spend more than a billion dollars on Dojo, with much of
(03:42):
the budget going toward custom chips and data centers.
And while Tesla has long claimedit leads in the AI race through
software, its hardware has been pretty laggy behind NVIDIA and
AMD, whose chips dominate training workloads in data
centers. A Tesla's new chips will not
replace Nvidia's for general AI training, but they will be
(04:04):
optimized for inference tasks inside vehicles and robots or
power efficiency and latency matter more than raw compute.
Samsung the Samsung deal said the contract covers a multi year
supply agreement and the Samsunghas already begun very early
production of these chips and they're expected to be taped out
(04:26):
later this year, meaning they'renearing final design and ready
for mass production. Tesla could begin integrating
the new hardware into vehicles sometime in 2026.
The early prototypes may appear sooner for testing.
Samsung's manufacturing process at 4 nanometers has seen several
improvements in yield, accordingto internal metrics reported by
the company earlier this year. These improvements helped
(04:49):
convince Tesla the Samsung's process has become competitive
with TSMCS, and Tesla's chip design team will still control
the chip architecture, while Samsung will acts as a foundry.
Tesla's pivot to more complex chip design also places it more
directly in competition with other AI firms, many of which
(05:10):
already designed their own ASICSchips.
That's application specific integrated circuits for machine
learning. Google has tensor processing
units or Tpus, and Amazon uses custom Tranium chips.
Tesla now joins that group with the Samsung manufactured HW-5.
Now the chip deal gives Samsung a major foothold in automotive
(05:32):
semiconductors market it has sought to enter more deeply over
the past decade. Most of Samsung's revenue has
historically come from memory chips and mobile processors, but
the company has increased investment in AI hardware and
auto components. Working with Tesla provides the
scale and the visibility to build momentum in both areas.
(05:54):
Now, Tesla remains very secretive about HW-5.
We don't know any specifications, but there is
some documents floating around. They've been obtained by supply
chain analysts and it suggests that the chip will support
faster neural network processing, real time
environmental modelling and alsoimproved compute per Watt for
(06:16):
onboard systems. Now these enhancements are
critical for any future roll outof fully autonomous vehicles,
which Musk continues to promise despite years of delays.
Now this contract doesn't guarantee the Tesla will launch
robo taxi or Optimus at a large scale anytime soon, but it
(06:38):
removes a major hardware bottleneck.
Tesla now has a dedicated sourcefor high end chips, reducing its
reliant on over stretched GPU vendors and giving it more
control over its product timeline.
Hey, thank you so much for listening today.
I really do appreciate your support.
If you could take a second and hit the subscribe or the follow
(06:59):
button on whatever podcast platform that you're listening
on right now, I greatly appreciate it.
It helps out the show tremendously and you'll never
miss an episode. And each episode is about 10
minutes or less to get you caught up quickly.
And please, if you want to support the show even more, go
to Atreoncom Stage Zero. And please take care of
(07:20):
yourselves and each other. And I'll see you tomorrow.
Hey everybody. Welcome back to the Elon Musk
Podcast. This is a show where we discuss
the critical crossroads that shape SpaceX, Tesla X, The
Boring Company, and Neurolink. I'm your host, Will Walden.
Just when you thought that Elon Musk couldn't shock you anymore,
(00:23):
Tesla has just locked in a majorchip deal with Samsung, which
deepens Elon Musk's effort to reshape his companies around AI
as opposed to Tesla vehicles. Now they signed a new contract
with Samsung for next Gen. chips.
According to multiple reports and also confirmed by Samsung in
(00:43):
a public statement, this is the first time that Tesla has
publicly committed to a major external chip supplier for
upcoming AI and autonomous driving hardware.
So why is Tesla turning to Samsung for chips though?
Because Elon Musk says he's in founder mode again, and he's
directing his energy toward whathe views as Tesla's next crucial
(01:04):
phase, transforming it into a dominant force in AI.
Tesla has relied mostly on its in house Full Self driving
hardware, but this new deal indicates the company needs more
specialized silicon to keep pacewith its software rivals.
Now, Samsung confirmed it will manufacture Tesla's new chips
(01:25):
using its four nanometer fabrication process, which is
one of the most advanced in the world.
Samsung's 4 nanometer tech allows for higher transistor
density, better power efficiencyand improved performance.
Now, the chips will be billed atSamsung's factory in South
Korea, and Samsung said the chips are part of Tesla's
Hardware HW-5 Hardware 5 platform, the next generation
(01:49):
after the currently shipping HW-4.
The powers Tesla's latest Autopilot and FSD systems.
Now, Tesla hasn't provided a timeline for when HW-5 will
launch, but internal documents show that it is being designed
to handle larger AI workloads needed for Tesla's Robotaxi
platform and Optimus humanoid robot.
(02:11):
By tapping Samsung's chip makingdivision, Tesla will also bypass
the oncoming backlog faced by TSMC, the world's leading chip
manufacturer, which handles contracts for Apple, NVIDIA, and
AMD. Now, Musk has publicly expressed
frustration with Nvidia's supplychain, specifically calling out
the limited availability of each100 GPU's.
(02:33):
While Tesla uses NVIDIA hardwarein his Dojo supercomputing
projects, the custom chips from Samsung will give Tesla more
control over its FSD road map. This aligns with Musk's recent
pivot to centralized Tesla's AI stack around vertically
integrated technology. Now, Samsung stock rose nearly
5% on news of the Tesla contract, making it one of the
(02:56):
best performers in South Korea'sKospi index on Monday.
Investors viewed the deal as validation of Samsung's
aggressive mood into foundry services work, a piece directly
with TSFC. Now.
Samsung has struggled to win high profile contracts outside
of mobile and consumer electronics, and Tesla offers
the company a powerful new customer and AI now.
(03:19):
Elon's decision to secure external chip supply also shows
that Tesla's growing hardware needs.
Then it shifts from cars to infrastructure and AI.
In recent months, Tesla has scaled up his Dojo
supercomputer, which processes massive data sets for FSD
training. Tesla said last year it planned
to spend more than a billion dollars on Dojo, with much of
(03:42):
the budget going toward custom chips and data centers.
And while Tesla has long claimedit leads in the AI race through
software, its hardware has been pretty laggy behind NVIDIA and
AMD, whose chips dominate training workloads in data
centers. A Tesla's new chips will not
replace Nvidia's for general AI training, but they will be
(04:04):
optimized for inference tasks inside vehicles and robots or
power efficiency and latency matter more than raw compute.
Samsung the Samsung deal said the contract covers a multi year
supply agreement and the Samsunghas already begun very early
production of these chips and they're expected to be taped out
(04:26):
later this year, meaning they'renearing final design and ready
for mass production. Tesla could begin integrating
the new hardware into vehicles sometime in 2026.
The early prototypes may appear sooner for testing.
Samsung's manufacturing process at 4 nanometers has seen several
improvements in yield, accordingto internal metrics reported by
the company earlier this year. These improvements helped
(04:49):
convince Tesla the Samsung's process has become competitive
with TSMCS, and Tesla's chip design team will still control
the chip architecture, while Samsung will acts as a foundry.
Tesla's pivot to more complex chip design also places it more
directly in competition with other AI firms, many of which
(05:10):
already designed their own ASICSchips.
That's application specific integrated circuits for machine
learning. Google has tensor processing
units or Tpus, and Amazon uses custom Tranium chips.
Tesla now joins that group with the Samsung manufactured HW-5.
Now the chip deal gives Samsung a major foothold in automotive
(05:32):
semiconductors market it has sought to enter more deeply over
the past decade. Most of Samsung's revenue has
historically come from memory chips and mobile processors, but
the company has increased investment in AI hardware and
auto components. Working with Tesla provides the
scale and the visibility to build momentum in both areas.
(05:54):
Now, Tesla remains very secretive about HW-5.
We don't know any specifications, but there is
some documents floating around. They've been obtained by supply
chain analysts and it suggests that the chip will support
faster neural network processing, real time
environmental modelling and alsoimproved compute per Watt for
(06:16):
onboard systems. Now these enhancements are
critical for any future roll outof fully autonomous vehicles,
which Musk continues to promise despite years of delays.
Now this contract doesn't guarantee the Tesla will launch
robo taxi or Optimus at a large scale anytime soon, but it
(06:38):
removes a major hardware bottleneck.
Tesla now has a dedicated sourcefor high end chips, reducing its
reliant on over stretched GPU vendors and giving it more
control over its product timeline.
Hey, thank you so much for listening today.
I really do appreciate your support.
If you could take a second and hit the subscribe or the follow
(06:59):
button on whatever podcast platform that you're listening
on right now, I greatly appreciate it.
It helps out the show tremendously and you'll never
miss an episode. And each episode is about 10
minutes or less to get you caught up quickly.
And please, if you want to support the show even more, go
to Atreoncom Stage Zero. And please take care of
(07:20):
yourselves and each other. And I'll see you tomorrow.
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