00:00 Speaker A What is Terafab? 00:01 Speaker B So, Musk has been talking about wanting to make his own chips for quite some time now, right? 00:07 Speaker B And this is, you know, he teased last week a big announcement's going to come and now we finally saw that with uh, Tesla and SpaceX working together to build this huge facility called the Terafab in in Austin, Texas. 00:15 Speaker B So, basi...
00:00 Speaker A What is Terafab? 00:01 Speaker B So, Musk has been talking about wanting to make his own chips for quite some time now, right? 00:07 Speaker B And this is, you know, he teased last week a big announcement's going to come and now we finally saw that with uh, Tesla and SpaceX working together to build this huge facility called the Terafab in in Austin, Texas. 00:15 Speaker B So, basically what, you know, he wants to make a terawatt of AI compute, right? That's, you know, 1,000 gigawatts, right? 00:23 Speaker B Huge numbers here. I mean, Musk said that, you know, currently the industry is putting out 20 gigawatts a year of AI compute total, right? 00:30 Speaker B A year. So this is a massive amount of of chips here. Uh they're going to make two kinds of chips, right? 00:35 Speaker B Uh one for Optimus and Tesla FSD vehicles, uh and the other one for data centers that require sort of a more rugged chip to kind of be up in space, right? 00:43 Speaker B So, uh that's sort of the plan here. The cost is going to be huge, right? Forget, we're not even talking about yet whether this is feasible. 00:48 Speaker B The cost is going to be 20 to 25 billion that's not included in Tesla capex right now. 00:53 Speaker B Morgan Stanley says it'll actually be a lot more, 35 to 45 billion, right? 00:57 Speaker B So that's what we're talking about cost-wise. Then the question also is, you know, can he actually do what TSM TM TSMC and other companies take years and years and years to make? 1:02 Speaker A Didn't he generally say, in fact, part of the reason didn't he make the argument, TSMC and Samsung they just they can't keep up? 1:06 Speaker A Is that part of what he's saying? 1:07 Speaker B He claims that we, you know, they're going to need millions of chips supposedly for all these Optimus robots, right? These robots are currently not doing anything right now. 1:14 Speaker B So, right? So that's that's sort of what he's betting big on that, but where is the use case ju...