How does it help Musk to take over IFS if the foundry can’t make Nvidia chips? It simply doesn’t have the capability. Wouldn’t it make better sense to invest in TSMC’s Arizona expansion and require TSMC to spin off into a US listco?
Here's what's really going to happen: MIGA = Make Intel Great Again
Here's the win-win situation for everyone.
Musk gains control of Intel IFS's 18A process and chips and gets as many high end semiconductors as he needs to achieve AGI superiority and beats all AI competitors, especially Altmans openAI, which Musk will especially relish. Only Musk can pull that off as he's clearly proven with all his other impossible-goal but highly successful companies. Sure, he's got his hands full. But, in addition to all his other unmatched talents, he's also the best talent scout, delegator, manager from an arm's length, and money raiser on the planet. After all, he is a rocket scientist and close to being a brain surgeon as well with his Neuralink company he owns.
inXtel can produce chips for the USA military and other companies that need high end chips
USA is less reliant on fragile Taiwan for chips, and less threatened by China putting a stranglehold on Taiwan and chip exports.
Trump has more leverage in negotiating deals with China about everything else. That explains Trump's postponing making a TikTok decision as well.
Musk's private xAI investors get a great ROI when they own part of Intel (IFS) whose stock will skyrocket as a result of the Musk Midas touch phenomenon. By the way, NVIDIA is an investor in xAI. Jensen Huang is not taking any chances and hedging his bets, as he is dependent on Taiwan to make the hot NVIDIA H100, H200 and Blackwell chips, and fearful of what China might do to impede that.
Intel shareholders will also get shares in high flying xAI merger with IFS, so shareholders will vote for the merger
Intel will own a piece of the merged company, so the board will vote for the merger, and Intel will probably get some much needed cash as well
The merged company raises money from stock sales and from Saudi and Dubai investors since the merged company will need at least $50 billion to get 18A on course and humming
Musk will remain the largest xAI+IFS shareholder bringing him closer to becoming the first trillionaire, with no one a close second. Forbes will have to publish a supplement to its Billionaire issue; Trillionaire, but with only 1 page.
An xAI merger with the Intel IFS division would certainly be most entertaining, the best for Musk, the best for Trump, the best for the USA, the worst for China.
Musk just released Grok 3 a few days ago and he says it's the best AI on the planet. It runs on a cluster of 100,000 high end networked NVIDIA chips. Musk is in a race with his competitors to reach AGI. In the past he has posted that he needs to cluster 200,000 to a million NVIDIA chips (to reach AGI). In a news conference on X at the Grok3 release, Musk said he is now in the process of networking 200,000 NVIDIA chips. Musk therefore needs an uninterrupted source of the highest end chips. NVIDIA can't make enough chips (all made by Taiwan Semiconductor). Additionally the NVIDIA chips cost about $25,000 - 40,000 each. Musk I'm sure gets a volume discount, but if he can make the chips in his own xAI-IFS company, he'll save billions of dollars, and we know he is a fanatical cost cutter. The only way he can do that is by owning the chip design processes and manufacturing fabs at IFS. It's not as hard as catching a reusable Starship on Mechazilla.
I believe that the xAI-IFS merger will be announced after the Senate approves Kash Patel as head of FBI, which happened yesterday. IOnce Patel is approved Trump will have all the people he wants in his cabinet, and Democrats won't be able to do much about Musk's increased power.
Should be announced soon: xAI + Intel/IFS = inXtel.
How does it help Musk to take over IFS if the foundry can’t make Nvidia chips? It simply doesn’t have the capability. Wouldn’t it make better sense to invest in TSMC’s Arizona expansion and require TSMC to spin off into a US listco?
Here's what's really going to happen: MIGA = Make Intel Great Again
Here's the win-win situation for everyone.
Musk gains control of Intel IFS's 18A process and chips and gets as many high end semiconductors as he needs to achieve AGI superiority and beats all AI competitors, especially Altmans openAI, which Musk will especially relish. Only Musk can pull that off as he's clearly proven with all his other impossible-goal but highly successful companies. Sure, he's got his hands full. But, in addition to all his other unmatched talents, he's also the best talent scout, delegator, manager from an arm's length, and money raiser on the planet. After all, he is a rocket scientist and close to being a brain surgeon as well with his Neuralink company he owns.
inXtel can produce chips for the USA military and other companies that need high end chips
USA is less reliant on fragile Taiwan for chips, and less threatened by China putting a stranglehold on Taiwan and chip exports.
Trump has more leverage in negotiating deals with China about everything else. That explains Trump's postponing making a TikTok decision as well.
Musk's private xAI investors get a great ROI when they own part of Intel (IFS) whose stock will skyrocket as a result of the Musk Midas touch phenomenon. By the way, NVIDIA is an investor in xAI. Jensen Huang is not taking any chances and hedging his bets, as he is dependent on Taiwan to make the hot NVIDIA H100, H200 and Blackwell chips, and fearful of what China might do to impede that.
Intel shareholders will also get shares in high flying xAI merger with IFS, so shareholders will vote for the merger
Intel will own a piece of the merged company, so the board will vote for the merger, and Intel will probably get some much needed cash as well
The merged company raises money from stock sales and from Saudi and Dubai investors since the merged company will need at least $50 billion to get 18A on course and humming
Musk will remain the largest xAI+IFS shareholder bringing him closer to becoming the first trillionaire, with no one a close second. Forbes will have to publish a supplement to its Billionaire issue; Trillionaire, but with only 1 page.
As Elon Musk frequently says, "the most entertaining outcome is most likely." https://x.com/cb_doge/status/1890929064510103863
An xAI merger with the Intel IFS division would certainly be most entertaining, the best for Musk, the best for Trump, the best for the USA, the worst for China.
Musk just released Grok 3 a few days ago and he says it's the best AI on the planet. It runs on a cluster of 100,000 high end networked NVIDIA chips. Musk is in a race with his competitors to reach AGI. In the past he has posted that he needs to cluster 200,000 to a million NVIDIA chips (to reach AGI). In a news conference on X at the Grok3 release, Musk said he is now in the process of networking 200,000 NVIDIA chips. Musk therefore needs an uninterrupted source of the highest end chips. NVIDIA can't make enough chips (all made by Taiwan Semiconductor). Additionally the NVIDIA chips cost about $25,000 - 40,000 each. Musk I'm sure gets a volume discount, but if he can make the chips in his own xAI-IFS company, he'll save billions of dollars, and we know he is a fanatical cost cutter. The only way he can do that is by owning the chip design processes and manufacturing fabs at IFS. It's not as hard as catching a reusable Starship on Mechazilla.
I believe that the xAI-IFS merger will be announced after the Senate approves Kash Patel as head of FBI, which happened yesterday. IOnce Patel is approved Trump will have all the people he wants in his cabinet, and Democrats won't be able to do much about Musk's increased power.
Should be announced soon: xAI + Intel/IFS = inXtel.