Elon Musk said Tesla may need to build a “gigantic” semiconductor plant to produce its next-generation AI processors and suggested potential talks with Intel, though no agreement has been reached. The company is developing a fifth-generation AI chip, with limited output targeted for 2026 and higher volumes in 2027, and an AI6 follow-on slated for mid-2028 using the same fabrication lines. Mr. Musk sketched capacity of at least 100,000 wafer starts a month and claimed the design would be far cheaper and more power‑efficient than Nvidia’s Blackwell chips. The remarks came as shareholders approved a $1 trillion decade-long pay package for Mr. Musk; Intel shares gained on the comments, and the article noted the U.S. government recently took a 10% stake in Intel. Intel declined to comment.
Musk floats massive Tesla AI chip megafactory, hints at possible Intel tie-up
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