Tesla CEO Elon Musk has said that the company's internal developments, including hardware and chip design, favor the company's in-house work over any other option.
“There really isn't a chip from Nivea or any other company that's better than what we have in our car,” he said. “We started from scratch with chip design, just like we started from scratch with AI software, and the best real-world AI software and the best AI inference chip in the world – from nothing.”
His comments came during a question-and-answer session following the company's closely watched shareholder meeting, where Tesla shareholders voted to re-approve Musk's controversial $56 billion pay package — still under judicial review — as well as a move to move its corporate headquarters from Delaware to Texas. As a Report as if Bloomberg.
To wrap up the event, he took to the stage to discuss the company's vehicle lines, automotive software, robotics and AI.
Tesla's long-term plans focus on fully self-driving (FSD) cars, and Musk says Tesla's technology is the best.
“Tesla writes a lot of software inside,” Musk told the audience. “Tesla's operating system is head and shoulders above what any other company has. I think it's probably better than a Fortune 500 company with internal software — that's much better.”
“Take a video and make a decision based on that video? No one comes close, it's getting better every month if not a week,” he added.
While declaring that Tesla is more than a car company, Musk took aim at rival AI developers.
“Tesla is a leader in real-world AI,” Musk said. “Tesla is ahead of Google, Meta, OpenAI, anybody in real-world software.”
In the year Musk, who co-founded OpenAI in 2015, has been in a public battle with the CEO of the premier generative AI developer. Recently, Apple has said that they will be banned from the companies for rejecting its agreement to install ChatGipt on its devices. When it sued OpenAI for breach of contract in March, it dropped the suit without comment on Tuesday.
The CEO — who owns SpaceX and co-founded Neuralink — specifically founded xAI, a generative AI company that offers a chatbot called Grok by X (also called Twitter).
Musk also presented the company's work on the hardware side.
“It's also worth noting that Tesla is very good at chip design — the AI inference chip designed by Tesla is in the cars,” Musk said. “We had three AI estimates for our hardware [chip]; Last year's cars had hardware four, we have completed design on hardware five and now we call it AI five.
Musk cited Tesla's robotics efforts, highlighting the Optimus humanoid robots working in Tesla's factories and offices.
“We have two Optimus robots in our Fremont factory that perform tasks that take cells off the line and place them in a shipping container,” Musk said. We have quite a few of these in our offices in Palo Alto. Tesla's CEO says he expects to see 1,000 Optimus robots operating at Tesla.
Rival OpenAI has robots on the market through a robotics startup 1XIn which OpenAI has invested since 2022.
Musk told the audience he was bullish on the future of human robotics, estimating the market capitalization for autonomous transportation to be between $5 trillion and $7 trillion, but Optimus' market value would be $25 trillion.
Edited by Ryan Ozawa.
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