Intel shares rise after Elon Musk mentions possible chip partnership
Investor optimism grows as Tesla explores new collaboration with Intel to strengthen AI chip supply for autonomous vehicle technology.
Key Takeaways
- Intel shares increased by 2.3% after Elon Musk said Tesla was open to partnering with the semiconductor manufacturer on future chip production.
- Tesla is developing AI chips and is exploring manufacturing partnerships to bolster its self-driving technology.
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Intel shares climbed 2.3% in early trading Friday after Elon Musk, CEO of Tesla, said at the company’s annual meeting that he was open to talks with the semiconductor giant about potential chip production partnerships.
Even if Tesla’s current suppliers (TSMC and Samsung) are able to meet the best-case scenario, it will “still not be enough” to meet Musk’s long-term demands, Musk stated.
Tesla has been developing its own AI chips while exploring manufacturing partnerships to support its self-driving technology initiatives. The electric vehicle maker is considering Intel as a potential partner for chipmaking to advance its AI hardware development.
Musk’s comments sparked investor interest amid broader industry efforts to diversify semiconductor supply chains for AI applications. The discussions come as Tesla continues to expand its AI capabilities for autonomous driving systems.
