Tim Byers

It's a floor wax and it's a dessert topping, you know, for those who remember their 1970s SNL references.

I mean, it's it's no, I mean, look, I've got to look that one up.

There is there is nothing that Elon Musk thinks he can't do.

And so here we are.

Now, to be fair to him, what he believes is that in order to serve all of his various businesses, he needs compute.

And he needs compute at scale.

He needs it for SpaceX, he needs it for Tesla, he needs it for XAI.

And so, in order to solve that problem, he wants to create TeraFab.

And TeraFab is this idea of just this massive scale chip manufacturing facility organization

I think there are reasons to ask questions, but there is a logic to it, so let's give him credit there.

But TSMC is an incredibly efficient supplier, and they are able to manufacture chips at scale because they've been doing it for decades.

And they do it at the smallest possible form factors.

And if you want to do what Musk wants to do,

which is manufacture AI compute, then what you end up getting is a real push to manufacture the smallest chips possible.

Right now, that's at 2 nanometer.

TSMC is already there.

Musk is presumably going to get there.

But I think there is a lot to be determined with this.

The vision

As with most things that Elon Musk gives us, there is a logic behind this, but the difficulty level is just extreme.