Hey everybody, welcome back to the Elon Musk podcast.
This is a show where we discuss. The critical.
Crossroads the shape. SpaceX.
Tesla X, The Boring Company, and Neuralink and I'm your host Will
Walden. If you want uninterrupted
episodes of the Elon Musk podcast, please go to
clubelon.supercast.com to find out how.
There's a. Link in the show notes.
So Tesla is intensifying its efforts in artificial
intelligence by planning a new $500 million Dojo supercomputer
at its Gigafactory in Buffalo, NY.
Now, Tesla's broader ambitions here in the AI space show that
it's moving beyond its core electric vehicle business, and
the Dojo supercomputer is key for AI model training,
showcasing the crucial role of computing power in AI
advancements. Now the project to build a
second Dojo computer is not only a significant step for Tesla,
but also benefits its suppliers, notably NVIDIA and Taiwan
Superconductor Manufacturing Company, or TSMC.
Now VIDIA, which provided the GP US for Tesla's initial Dojo
computer, is poised to benefit from the sales of thousands more
GP US for the new installation, representing A considerable
portion of the project's total cost and Nvidia's involvement in
the Dojo project, It's expected to have a notable impact on its
financials if the $500 million investment in GPU's.
Were to occur in a single quarter.
Would constitute about 3% of Invidia's revenue based on their
third quarter fiscal 2024 earnings.
Now this relationship underscores the symbiotic
dynamic between Tesla's AI initiatives and Invidia's growth
in the GPU market. Let's move on to TSMC, which the
world's foremost computer chip manufacturer also stands to gain
from Tesla's expansion into AI computing.
TSMC provides chips for both NVIDIA GPUs and also Tesla's
vehicles. Benefiting from the heightened
demand for AI capabilities, the company anticipates its AI chip
revenue to surge with projections of a 50% compound
annual growth rate. Tesla's plans for further Dojo
supercomputers, including Dojo 1.5, Dojo 2, and possibly Dojo 3
or Dojo 4, show that they're continuously working for high
performance computing in AI. Ongoing demand is crucial for
both NVIDIA and TSMC, ensuring a steady flow of business from
Tesla and potentially other tech firms investing in AI.
Now, the importance of suppliers like NVIDIA and TSMC in the AI
and computing ecosystem is increasingly evident.
Their contributions to building critical components for
supercomputers like Tesla's Dojo, show that there's an
interconnected nature of the tech industry and the importance
of strong supply networks for technological progress.
Now, recent comments from Elon Musk, Tesla CEO, regarding the
Dojo supercomputer have led to speculation about the project's
progress and Musk's confidence in its success.
And despite previously high expectations, Musk's current
statement suggests possible challenges or even reassessments
within the project itself. You know, Musk's somewhat
confusing remarks on the Dojo project during an investor
meeting have raised questions about Tesla's achievements in
developing this supercomputer. These comments contrast with
Musk's early enthusiastic narratives, hinting at potential
obstacles or shifts in the project's trajectory.
Now, Musk's approach to discussing Tesla's projects,
including Dojo, show that he has a history of bold visions,
excitement, sometimes in advance of concrete results.
This strategy has kept Tesla in the spotlight, of course, even
as some initiatives face prolonged development and also
unforeseen challenges like the $25,000 low budget Tesla
vehicle. Now, the discussion around
Tesla's Dojo and Musk's recent statements show that there's
been past instances where Musk used hype to garner interest
even when projects were in very early stages, like Pre, Pre,
Pre, Alpha. And this tactic has been
effective in maintaining interest in Tesla's innovations
and blowing up the stock, despite the complexities of
bringing ambitious projects to fruition.
Also, Tesla's stock performance has been influenced by various
factors, including Musk's public actions and ambitious projects
like Dojo. And despite these setbacks,
there's still investor optimism about Tesla's potential impact
on AI and autonomous driving has seen in market reactions to Dojo
related news. Now, the evolving nature around
Tesla's Dojo project, from groundbreaking supercomputer to
current uncertainties, exemplifies the challenges and
complexities of technological innovation and also building an
AI model with thousands of GPUs. Now, Tesla invests millions of
dollars in AI and supercomputing, and it not only
impacts its business, but also shows that there's going to be a
relevant AI increase across all industries.
High performance computing is essential for advanced AI
applications, and it shows that technology is shifting towards
artificial intelligence for everything.
For NVIDIA and TSMC, Tesla's Dojo project is indicative of
larger industry trends where demand for AI and machine
learning drives the need for specialized hardware and chip
manufacturing capabilities. As Tesla pushes forward with its
AI and supercomputing efforts, the collaboration with key
partners like NVIDIA and TSMC will be critical.
Now, their expertise in GPU's and chip manufacturing
respectively, plays a vital role in realizing complex projects
like the Dojo supercomputer in Buffalo, NY and Tesla's
expansion into AI. More so than what they've
already done with their vehicles in the development of Dojo
supercomputers show that Tesla and Elon can work well with
other companies, other suppliers to get the job done.
And it's an unpredictable nature of cutting edge technology that
keeps Dojo in check. There is complexities and
uncertainties that accompany the forefront of the tech innovation
and the tech industry. 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 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 Patreon dot.
Com slash stage zero and please take care of yourselves and each
other. I'll see you tomorrow.