First flagship customer for Intel factories: Tesla will produce innovative AI chips

Tonight, after the publication of the results of the sister company Tesla, CEO Musk announced that the electric vehicle company will produce advanced artificial intelligence processors using Intel’s future new production technology, A14. Intel did not respond to the publication and did not confirm it at Globe’s request either.

● 100 billion dollars in ten days – the dream sequence that returned the Intel stock to its peak
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Musk’s words constitute a first significant achievement for Intel in recent years – this is the first time that a major customer admits that it intends to produce AI chips in one of the company’s two future technologies – A18 or A14, chips with circuit technology below 2 nanometers.

To this day, Intel’s customers – and Intel itself – produce advanced processors with technology lower than 5 nanometers in the factories of the competitor TSMC, so this is the first proof of feasibility for the American chip company to produce processors with a tiny geometry, which deal with artificial intelligence and serve large customers.

For comparison, the chips produced at the Intel factory in Kiryat Gat are mainly intended for the market of core processors for personal computers and for cloud computing in servers, with only 7 and 10 nanometer technology.

stock Intel It is up at this time in late trading on the Nasdaq by about 2%, and as of the end of the trading day last night (Wednesday) it is trading at a value of 328 billion dollars. Last week, after the announcement of an initial partnership with Musk, its value was only 261 billion dollars.

A production capacity of one million megawatts per year

This is a direct continuation of Inital’s announcement from last week that it will produce chips for Musk’s conglomerate of companies. According to the assessment, this is much more than the production of processors for cars, the autonomous taxis at Tesla or the launchers at SpaceX – at Tesla they are building a new era of human-like robots that are used as domestic helpers and production workers, while at SpaceX they are building on expanding the construction of server farms for artificial intelligence processing on Earth and in space. The term Musk coined, “terra-fab,” implies the production of a total of a terawatt — one million megawatts — of artificial intelligence processing capacity per year.

About two years ago, Microsoft announced its willingness to produce in Intel’s new production plants as an external customer, but the statement was made in a general and non-binding manner, and the companies have yet to address the issue after that.