Elon Musk Reveals in Secret Meeting with TSMC Chairman That Tesla’s Future Lies in Optimus Robots, Not Cars

This article does not constitute investment advice. The author does not hold any positions in the stocks referenced.

Tesla’s Bold Move Toward the Future: Focus on the Optimus Robot

In a recent secretive meeting, Elon Musk may be signaling a transformative shift in Tesla’s strategic direction, focusing on the development of its humanoid robot, Optimus. This speculation is based on information leaked following a discussion between Musk and TSMC’s Chairman, CC Wei.

Rumor: TSMC Chairman CC Wei met with Elon Musk in the US last week to discuss production capacity for Dojo AI chips, media report, which will be made using TSMC’s 5nm process and use InFO-SoW advanced packaging. Musk reportedly told Wei that the future direction of Tesla was…

— Dan Nystedt (@dnystedt) December 17, 2024

According to a report from a Taiwanese publication, Musk urged Wei during their meeting in the US last month to prioritize the manufacturing capacity of Tesla’s proprietary Dojo chip. This chip, which employs TSMC’s advanced 5nm process along with InFO-SoW packaging technology, is critical for fulfilling Tesla’s expanding computational needs.

Shifting Focus from Vehicles to Robotics

In a surprising twist, Musk indicated that Tesla’s future trajectory may lean more towards the Optimus robot rather than its traditional automotive lineup. Wei reassured Musk, stating,

“Don’t be nervous, as long as you are willing to pay, your chip must [sic] be there.”

However, a correction is necessary regarding reports that the Dojo chip will directly integrate into Tesla’s vehicles or Optimus. According to expert Jeff Lutz, the Dojo chip is intended primarily for Tesla’s data centers to enhance neural network training rather than for direct usage in cars or robots.

Dan, this is also what I heard. But maybe lost in translation. For Tesla, Dojo is their own custom data center-side training chip. It will not go into Optimus or the car. What goes in cars today and Optimus prototypes is called the AI4 chip or computer, designed by Tesla,…

— Jeff Lutz 🔋 (@thejefflutz) December 17, 2024

Technological Advancements and Future Production Plans

Currently, both Tesla’s Full Self-Driving (FSD) systems and the Optimus prototypes operate on the AI4 chip. An upgraded version, the AI5 chip, is expected to roll out in 2025, coinciding with the anticipation surrounding the newly announced Cybercab. Industry experts predict that both Samsung and TSMC may secure contracts for manufacturing the AI5 chips.

Analyst John Murphy from Bank of America has indicated that by the end of 2025, Tesla plans to deploy approximately 1,000 Optimus robots in its factories, a significant move showcasing the company’s commitment to integrating advanced robotics into its operations.

The Future of the Optimus Robot

The Optimus robot boasts a sophisticated AI-driven brain capable of interacting with its environment. Currently, it can perform basic manual tasks, but future updates will enhance its AI-driven functionalities immensely. For instance, the robot utilizes its neural network to adeptly navigate obstacles and recognize objects. It is even equipped with advanced tactile sensors that enable it to perform delicate tasks, such as carefully picking up an egg.

Looking ahead, Deutsche Bank projects that the Optimus could contribute significantly to Tesla’s revenue, estimating a potential annual income of $10 billion by 2035 based on the sale of 200,000 units, with an average selling price of $50,000.

In conclusion, as Tesla pivots towards robotics and artificial intelligence, the implications of this strategic shift could redefine its operational landscape and market offerings.

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