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Elon Musk appears to be betting Tesla's future on a risky gambit that centers on the company's still-in-development humanoid robot, dubbed Optimus, as per the leaked anecdotes of a recent secretive meeting that supposedly took place between the CEO of Tesla and the Chairman of TSMC, 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
To wit, a Taiwanese publication is now reporting that Wei met Elon Musk in the US last month, where the CEO of Tesla emphasized the need for TSMC to devote sufficient production capacity to manufacture Tesla's in-house Dojo chip in the required quantities. The chip leverages TSMC's 5nm process, and is paired with InFO-SoW advanced packaging.
In a critical tidbit, Elon Musk reportedly told Wei that Tesla's future direction would be predominantly tilted towards the Optimus robot instead of cars.
To allay Musk's apprehensions, Wei purportedly provided the assurance that TSMC would provide as many Dojo chips as Tesla could pay for:
"Don't be nervous, as long as you are willing to pay, your chip must [sic] be there."
Of course, the report erroneously mentions that Tesla intends to incorporate its Dojo chip within its EVs and the Optimus robot.
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
Instead, as clarfied by Jeff Lutz, the Dojo chip is primarily intended to support Tesla's rapidly increasing neural network training needs as the EV giant gears up for full autonomy.
In contrast, Tesla's FSD and the Optimus robot currently use the AI4 chip as the main processor. The AI5 chip is expected to enter into production in 2025, just in time for the recently announced Cybercab. According to Lutz, Samsung and TSMC will likely win a split manufacturing contract for the AI5 chips.
According to Bank of America (BofA) analyst John Murphy, Tesla plans to deploy around 1,000 Optimus robots on its factory floors by the end of 2025.
As a refresher, the Optimus robot leverages a neural network-trained, AI-equipped brain that allows it to interact with the external elements. The bipedal robot is currently capable of performing menial, labor-intensive tasks, with significant AI capabilities in the pipeline. The Optimus is able to leverage its bespoke neural network to map and navigate obstacles as well as track objects. Tesla's humanoid robot is also equipped with sensitive tactile finger sensors that allow for picking up an egg with admirable finesse.
Bear in mind that Deutsche Bank sees Tesla's Optimus bringing in $10 billion in annual revenue by 2035, based on a sales volume of 200,000 units and an ASP of $50,000.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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