Elon Musk Shifts Tesla's Focus to Optimus Robots, Seeks Stable Chip Supply from TSMC

Elon Musk talks to TSMC boss, wants a (huge) stable supply of chips for Tesla's Optimus robots

TL;DR: TSMC chairman C.C. Wei discussed with Elon Musk the future focus on robots over cars, emphasizing the need for a stable chip supply for Optimus robots. At Taiwan's National Science and Technology Conference, Wei highlighted Taiwan's role in AI, precision machinery, and the importance of energy conservation and resource management. TSMC has also boosted profits using AI technology. TSMC chairman C.C. Wei has said that he talked with the world's richest man -- SpaceX, Tesla, and xAI boss Elon Musk -- and that Elon said the future was robots, not cars, and that his biggest concern was the stable supply of chips for the Optimus robots. The TSMC boss was at Taiwan's 12th National Science and Technology Conference, where he talked to Elon, with Wei promising that TSMC could deliver as long as he is willing to pay. Wei told conference attendees that multi-purpose robots are the AI wave of the future, and that's it a huge opportunity for Taiwan, because making them requires precision, joining the worlds of semiconductor technology with software. Wei also said that drones, energy conservation, reducing carbon emissions and natural resource management are also important key parts for Taiwan and its continued AI efforts. Wei also pointed out that Taiwan has excellent design companies as well as chip manufacturing and packaging + testing plans, as well as advanced semiconductors and precision machinery. These manufacturing technologies that Taiwan excels in, will play a decisive role in the future waves of AI, where we will see multi-functional robots in our daily lives, with this being the direction that the industry development will move into, and no matter what future the AI market holds, the stable supply of chips is paramount to the future of AI. The TSMC boss also said that his company has been using AI technology to improve production efficiency, and has increased profits by tens of billions of dollars through the introduction of AI technology.

Elon Musk prioritizing humanoid robot advances, says TSMC CEO -- TSMC will supply the chips if the price is right

CC Wei assures Musk, 'I will make sure you get the chips' as long as the price is right. Elon Musk has fingers in many high-tech pies, but the world's richest man is now prioritizing advances in humanoid robotics, states TSMC's CC Wei. The Chairman and Chief Executive Officer of TSMC shared this information nugget with delegates at the Taiwan National Science and Technology Conference on Monday, reports Electronics Weekly. Moreover, he told his audience that TSMC would supply all the chips Musk wanted if the price was right. In August, we last discussed Musk's Optimus robots when the billionaire tech mogul showed off the newly renamed Cortex AI supercluster. At the time, this impressive supercomputer used 50,000 Nvidia H100s. Even more impressively, it had grown to leverage over 100,000 H100s by the beginning of this month, with plans supposedly to go for the million... We know this AI supercomputer power will be directed at xAI's signature products like Grok - hoping to outgun rival OpenAI's ChatGPT and Google Gemini. Investors have also been informed that Cortex will be used to train the long-awaited Full Self Driving (FSD) autopilot system for Tesla and today's headlining AI-powered future tech product - Optimus humanoid robots. According to the cited report, Optimus is now Musk's pet project. CC Wei told conference delegates that "multifunctional robots are the most critical area and that he is dedicating great efforts to it, rather than cars." Tesla owners might like to know that. The TSMC boss also let it be known that Musk was concerned about securing adequate supplies of processors to realize his AI-powered humanoid robot dreams. TSMC currently makes Tesla Dojo chips, and as is typical of the AI industry, the tech titans behind this segment can't get enough chips. Wei revealed that he tried to calm Musk's chip-starvation worries by explaining, "If you are willing to pay us, then please don't worry too much. I will make sure you get the chips." So, humanoid robots look set to enjoy massive financial and technological investments, but they aren't the only sector TSMC's CC Wei sees necessary for the company's future fortunes. Wei also highlighted opportunities in drones and powering AI applications to optimize the provision of utilities like water, gas, and electricity.

Elon Musk Reportedly Told TSMC's Chairman In A Recent Secret Meeting That Optimus Robots - Not Cars - Are Tesla's Future

This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy. 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. 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. 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.