Exploring the frontiers of Technology and AI
Ejaaz:
Elon is playing Game of Thrones yet again, this time releasing a new AI chip
Ejaaz:
that is going to power his RoboTaxi, his new Tesla Optimus Primes,
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and all of his devices and cars that he launches right now.
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And the reason why this is so important is this is going to contend directly with Nvidia.
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He's coming for Jensen Huang's throat.
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But in other news, he also released this new product called the Megablock,
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which consists of Megapacks, which can power everything from homes to massive towns.
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But the reason why this is so important is it's gonna unlock 50% of the energy
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and power that the US and the world currently does not have access to.
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And that is so, so important.
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But starting off with these new AI chips called Tesla's AI-5 chip,
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which is supposedly meant to be 40 times better than their current AI-4 chips.
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But don't take my word for it.
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Take it from the man himself. And we're finalizing the design of AI5,
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which will be an immense jump from AI4.
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By some metrics, the improvement in AI5 will be 40 times better than AI4.
Ejaaz:
Wow. So 40%, 40 times.
Ejaaz:
And this is because we work so closely at a very fine-grained level on the AI
Ejaaz:
software and the AI hardware.
Ejaaz:
Work josh i know that you watched the entire presentation for the ai5 chips
Ejaaz:
and for the transformer stuff i want to hear your take before we go any further.
Josh:
Uh yeah we'll start one thing at a time we'll do the ai chips
Josh:
first because those are freaking awesome so ai chips
Josh:
have been big a big part of tesla since the beginning of the
Josh:
company when you require autopilot in cars it means you
Josh:
need a lot of processing a lot of inference power on these chips to
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run locally on the vehicles ai5 is the natural extension of
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what they've been working on so if you've owned a tesla you're familiar with
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the tesla they started with ai1 they went up to 2.5 3
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3.5 now we're at four which is currently shipping on
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all vehicles hardware five is a slight change
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in the strategy because previously tesla had these two domains
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of experts in the world of ai and chip fabrication they
Josh:
had their dojo team which was building this like commercial
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infrastructure arm and then they had the ai chip
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infrastructure team that was building the chips that actually went in the vehicles what they
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did recently is they merged the two together into a single
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ai fabrication team and they are working solely on
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ai5 and ai6 now what makes ai5 so special well aside from it being much faster
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than ai4 which is currently running on vehicles like elon just described ai5
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also does this interesting thing where they're starting to actually use it for
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real-time inference in data centers as well so an interesting thing that happens with
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AI5 that I don't think a lot of people are going to recognize,
Josh:
and I want to kind of draw a tie to Apple, is that they now own the vertical
Josh:
integration of this hardware chip.
Josh:
So, Ejaz, if you remember previously, Apple used to use Intel chips for their MacBooks.
Josh:
When you had a MacBook Pro, you used an Intel chip. And it worked really well
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until Apple rolled out the M-series chips.
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And when they put those chips in
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a MacBook, suddenly I no longer needed my 65-pound PC to render a video.
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All I needed was my tiny little macbook and my battery life
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doubled the processing power quadrupled everything about
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the device got so much better because it was vertically integrated into
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the system they own the entire stack from the hardware to software and everything
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in between this is tesla's attempt at the m1 chip but
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for robotics so tesla currently has two arms of
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real compute real world compute and that's
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their autonomy in the cars and autonomy in the robots ai5 and
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shortly soon after ai6 will be the actual chip that runs in
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both of those things it's a universal chip that exists to
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run local inference on any sort of autonomous hardware device and it's going
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to be really freaking fast really impressive and it'll it'll be small enough
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that it could fit into all of these smaller devices so i think that's why this
Josh:
is a big deal is this is very much apple's m-series chip moment uh but for tesla
Josh:
which i think is really cool and super super exciting yeah
Ejaaz:
Um i was reading up on uh a few of like the important stats about this new chip
Ejaaz:
and I read that it can basically service up to 250 billion parameter models,
Ejaaz:
which isn't the largest models we've ever quoted on this show, Josh.
Ejaaz:
We've been talking about like trillion parameter models coming from like the
Ejaaz:
likes of, I don't know, Kimi K2 out of China and stuff like that.
Ejaaz:
But I think the important part here is the efficiency that comes from this chips.
Ejaaz:
I believe this is like the cheapest silicon per power watt chip that would exist
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theoretically once they start mass producing it.
Ejaaz:
I think it's slated for 2026 out of TSMC, which is close to another big AI hardware giant, Josh, right?
Ejaaz:
And that is NVIDIA. And it got me thinking about NVIDIA as a whole,
Ejaaz:
which basically has had the linchpin on any
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kind of AI GPU or chip that
Ejaaz:
is needed from some of the biggest players right open ai anthropic
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um google they all use um and
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rely on nvidia this tiny company which is producing all these
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kinds of things not tiny company but is manufacturing all these
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kinds of things on a tiny island called taiwan uh
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via tsmc and so there's never really been
Ejaaz:
some kind of major competitor there have been a few
Ejaaz:
attempts at this out of china because they haven't had access to
Ejaaz:
nvidia stuff um but they've never really gotten
Ejaaz:
anywhere and now we're seeing a real challenger to the throne which hasn't materialized
Ejaaz:
just yet but has plans to do that and i was checking out this video um which
Ejaaz:
uh really kind of like summarizes what elon is trying to pull off here and maybe
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we can play it super quickly what constellation of all these little components fits.
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And then he figures out, oh, this Optimus Teams is this, and RoboTex is this, and this, and this.
Ejaaz:
Oh, we actually don't need this NVIDIA thing. We can build this into one chip,
Ejaaz:
and then it matches the Samsung constellation, and then we tweak it a little bit more.
Josh:
Boom.
Ejaaz:
And that's what I mean with reality engineering. So what he's referencing here
Ejaaz:
is the current setup for Tesla and all the devices and machines that they build,
Ejaaz:
is it all requires different chips with slightly different architectures, right?
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And as you mentioned earlier, Josh, since kind of like August,
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at least that's been public knowledge, he being Elon has started merging all
Ejaaz:
of his teams that are building these different kind of chip architectures into
Ejaaz:
one team to focus on creating one mega chip.
Ejaaz:
And call me a low IQ person, but the thing that immediately pops into my head
Ejaaz:
is the Iron Man kind of like sparkling glass that's in the center of his chest.
Ejaaz:
And I'm thinking of this all powerful core that basically can power anything
Ejaaz:
from his robotaxis to his Optimus Prime robots, which are being teased and stuff
Ejaaz:
like that. And I think that that is super powerful.
Ejaaz:
Building that in-house is going to be a huge investment and probably a very
Ejaaz:
risky endeavor, but probably there's no one better for the job than Elon.
Ejaaz:
I mean, Josh, do you think similarly or am I kind of like being too much in
Ejaaz:
my fantasy brain right now?
Josh:
No, no, that's right. That's right. They're going to do it. They're going to
Josh:
do it. It's going to be remarkable. AI5 is going to be
Josh:
pretty great um in terms of raw compute about eight
Josh:
times more powerful than ai4 ai6 i believe
Josh:
is um what has been teased as being the real game changer
Josh:
that's where we're really going to see the world start to shift that's probably
Josh:
going to be the one at mass scale with optimus that's going to be the one where you
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have full robotaxes all around the world i do think
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that i might disagree in one point in the sense that i don't
Josh:
know if it's an nvidia killer or if it's going to take any sort of market
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share from nvidia outside of just the sales that tesla gives
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to nvidia because if you're if you're a company all you really
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want is gpus and all you really want is compute
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and intelligence so if tesla's able to create an
Josh:
infinite amount or if they're able to scale this vertically and create
Josh:
more than they're able to buy from nvidia they'll probably just
Josh:
keep them for themselves so maybe nvidia loses the purchase order from
Josh:
tesla but i don't see any reason for tesla to actually sell them to anybody
Josh:
else because it's such a benefit to have that much compute power under one roof
Josh:
and for it to be maximally efficient so not only are they going to have a ton
Josh:
more chips but the chips are going to be a lot more energy efficient power if
Josh:
like all of the the things will just be much much better so
Ejaaz:
So i see your point of view i think why i
Ejaaz:
would argue against that is elon seems to
Ejaaz:
exhibit a behavior where if something isn't built to his kind of perfect specification
Ejaaz:
he gets super annoyed and just builds it in-house right if he can't like outsource
Ejaaz:
that in any way we saw that last week when we covered uh starlink's acquisition
Ejaaz:
of a company which basically gives them access to crazy spectrum broadband,
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which will now allow all his satellites,
Ejaaz:
which he's eventually gonna be releasing in space,
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to beam down lasers to our cell phones and get access to premium 5G and internet
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access wherever the hell you are, right?
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If you haven't seen that episode, definitely go and check that out.
Ejaaz:
So I have a feeling that he might get annoyed enough to just go whole hog and
Ejaaz:
go for Nvidia's throat, but I agree, like, if there's no necessary business
Ejaaz:
means, he probably won't.
Josh:
Yeah. If I'm Tesla and I have infinite compute power that I can generate myself
Josh:
by making it, I'm taking all of it.
Josh:
I want all the chips. I'm not giving that to anybody else. That's my new competitive advantage.
Josh:
And similar to Apple, like now you see it in all of their mobile,
Josh:
like the new iPhone, a single threaded processor from the new iPhone is equivalent
Josh:
to the M4 Max in a phone, which is just unbelievable, like efficiency and compute
Josh:
power in such a small device.
Josh:
So for Tesla to give that up seems unlikely, but oh my God, what a huge unlock
Josh:
it's going to be when they actually make it. And this isn't even the only Tesla news this week.
Josh:
I mean, you teased the Megablock, right? The new energy thing that they have going on.
Josh:
Do you want to just kind of explain what's going on with this new technology?
Josh:
Because this, to me, this is even more exciting than the chips. This is pretty cool.
Ejaaz:
Well, Josh, I kind of want you to explain it for me. I mean,
Ejaaz:
look at these images that are like staring at me in the face, right? Okay.
Ejaaz:
Okay. So let me give you my left curve take, right?
Ejaaz:
Cool. These look like some 1970s transformer type uh gizmos here it looks like
Ejaaz:
an old school data center it looks boring as hell josh what am i what am i staring
Ejaaz:
at what's a megawatt per hour and why is it important.
Josh:
Yeah okay so we can maybe define a few things that
Josh:
are going to be important for this segment which is a kilowatt which is shown
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kw and that's the rate it's kind of like you can think
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of each as like miles per hour but for power and then
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we have kilowatt hours which are kwh and that's
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the amount of energy which is kind of like gallons of fuel for a
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car and then we have megawatts and megawatt hours which
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are just a thousand times multiple on those so kilowatts megawatts kilowatt
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hours megawatt hours and the easy anchors are kind of like
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a phone battery has 10 watt hours which is 0.01 kilowatt
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hours a battery on an electric car like a tesla
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has 75 kilowatt hours and so on and so forth so the average
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home uses about 855 of these kilowatt hours
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per month that's about 28 and a half kilowatt hours per day about
Josh:
1.2 kilowatts of continuous draw so that's
Josh:
kind of how we can frame all of this um megablock did
Josh:
a really cool thing where they modularized these battery
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packs so within a megablock is a megapack a megapack has a bunch of energy stored
Josh:
inside and it is able to be deployed at scale to subsidize the grid so what
Josh:
the megablock is is really just you just you could think of like a small nuclear
Josh:
reactor almost except it doesn't actually generate its own energy it It just
Josh:
distributes the energy.
Josh:
And a lot of the problem with the grid that we have today is that
Josh:
We're generating a lot of energy. We're just not using a lot of it.
Josh:
And there's actually a chart that I want to show in one of these videos,
Josh:
if you don't mind pulling it up, which shows the amount of energy that we use
Josh:
relative to the amount that we produce.
Josh:
So you could see, EJS, in this chart, the amount of energy that we're actually
Josh:
using relative to the amount that we have, it's like 30 to 50%.
Josh:
We're using such a low amount of energy.
Josh:
And that's just because we don't have good efficiency in the grid.
Josh:
The way it works, and what the person in this presentation is describing right
Josh:
now, is you could see how it shifts up a little bit.
Josh:
The grid has to accommodate for the highest point of energy consumption,
Josh:
no matter where you are in the world.
Josh:
So if there's a huge blip in energy demand, they need to meet that energy demand.
Josh:
So there's no blackouts, which means they have to pour a lot of resources into one place.
Josh:
And it's not necessarily the most efficient place. It's just the place that
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has a lot of demand draw at one specific time.
Josh:
What these mega packs do and what these mega blocks do is they subsidize that demand.
Josh:
So I'm getting all my mega blocks and mega packs confused but
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basically what it is is you can drop one
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of these things into an area and it could subsidize the grid
Josh:
in a way that will smooth out that bumpy line that
Josh:
we just saw so one of the big things and the big problems that we
Josh:
have with current ai data training centers for example is
Josh:
getting the amount of energy that is required to these places is
Josh:
nearly impossible it's so hard and it's not because the energy doesn't exist
Josh:
it's because we don't have an efficient way to get it to the place so these
Josh:
mega blocks exist as a way to store that energy and then release it onto the
Josh:
grid in a way that smooths out those curves and allows you to optimize for more
Josh:
energy consumption on a regular basis.
Ejaaz:
That's super cool. I was thinking of other ways that I can kind of like understand
Ejaaz:
the magnitude of power that's going to be kind of like fueled through one of these.
Ejaaz:
And you mentioned that these mega blocks are basically going to be composed
Ejaaz:
of these things called mega packs, right?
Ejaaz:
And then I was like, well, okay, how powerful are of these individual mega packs.
Ejaaz:
And I was looking it up and one mega pack alone is enough to power 170 average
Ejaaz:
American homes for about a day.
Ejaaz:
Which is insane, right? And then I was like, okay, well, what is that compared
Ejaaz:
to the amount of power that's in a single Tesla car, which, you know,
Ejaaz:
you own one of these, Josh? And it's 67 of them.
Ejaaz:
So I'm trying to think about like how this kind of like stacks upon each other
Ejaaz:
as like Elon like keeps kind of like rolling all these like energy trade-offs
Ejaaz:
into one super efficient thing.
Ejaaz:
And I kind of like envision a world where you can kind of create a city in the
Ejaaz:
middle of a desert or somewhere where it's very resource scarce and have a fully
Ejaaz:
functioning society of people out there that can just kind of like survive on
Ejaaz:
their own with these Megapacks.
Ejaaz:
It also gets me thinking about eventually when we end up with,
Ejaaz:
you know, proficient space travel and we end up landing on different planets
Ejaaz:
and stuff, we could probably be able to power all of this from some of these
Ejaaz:
Megapacks, which is super, super cool in my opinion.
Josh:
Yeah, and it's not to discount the fact that we still need to power these Megablocks.
Josh:
So the Megablocks are just batteries. They don't actually generate any net new energy.
Josh:
But in the case that you can supply energy to these
Josh:
blocks well they will take care of all the rest and like you
Josh:
said ejes where there's a place where there's not a lot of infrastructure available
Josh:
or a lot of infrastructure gets wiped out you could just plug these into a electricity
Josh:
generating source and it will take care of the rest and it's a really cool compact
Josh:
thing i mean it's four megapacks they turn them into one block and then that
Josh:
one block provides about 20 megawatt hours per block
Josh:
It's a huge amount. And the speed at which they're able to actually deploy these,
Josh:
I think, is one of the most interesting things.
Josh:
Where in the presentation, they said they can get one of these deployed in 20 days.
Josh:
And that means with enough of them, you can get up to a gigawatt of energy in 20 days.
Josh:
And if you'll remember from our past episodes, a few of the data centers like
Josh:
OpenAI's Giants data center or XAI's Colossus data center, they're actually
Josh:
targeting for one gigawatt or two gigawatt of energy,
Josh:
which is a huge amount that cannot be deployed very, very quickly with these megablocks.
Josh:
So it's a really powerful way of not only subsidizing the grid,
Josh:
but unlocking energy that we previously would not have access to.
Josh:
I think a lot of the times we say, and I've been guilty of this,
Josh:
like we don't have enough energy.
Josh:
And the reality is we don't, but we could have a lot more if we just distribute
Josh:
it properly because we are losing half of it, almost half of it to just inefficiencies
Josh:
in the grid. And this will hopefully smooth that out over time.
Ejaaz:
Being a show where we discuss AI a lot, particularly AI models,
Ejaaz:
and we've mentioned how much energy and compute it requires to pre-train some of these models, right?
Ejaaz:
I'm wondering whether there are more efficient ways that we can train models
Ejaaz:
using these mega blocks or these mega packs, whichever one you want to consider.
Ejaaz:
I saw someone kind of like have a good take on X the other day where he basically said,
Ejaaz:
at nighttime, typically, it's harder to train some of these or pre-train some
Ejaaz:
of these AI models because it's not as efficient at nighttime for many different
Ejaaz:
reasons. for example, it might be cooler.
Ejaaz:
And if you could supply some of these mega packs or these mega blocks and have
Ejaaz:
that continually train certain models, I think we'll start to see some of these
Ejaaz:
things in Colossus 2 was the point I was going to make.
Ejaaz:
And I'm curious whether there is any kind of like overlap with
Ejaaz:
elon's new data center that he's building out where is it now is it in texas.
Josh:
I believe it's tennessee tennessee
Ejaaz:
Okay cool yeah i'm curious whether he might start implementing a bunch of these
Ejaaz:
different components that he's building with tesla into some of his ai driven efforts.
Josh:
Yeah i'm sure they will be because if you remember i think
Josh:
i forget what percentage of it was but almost all the electricity that
Josh:
went into the cloxus one structure in the first factory
Josh:
was from mega packs and a
Josh:
mega block is just a juiced up steroid version
Josh:
of that um and that's mostly because i mean in
Josh:
their case the the issue was that grid power isn't always completely
Josh:
smooth and when you're powering up and down a hundred thousand gpus at once
Josh:
the energy swings are very large very quick and they needed a way to smooth
Josh:
that out so the mega pack solved that now with a mega block it's just like that
Josh:
on steroids it is a tremendous amount of energy that you can smooth out into
Josh:
these data centers that doesn't mess up a single training rod and there's this crazy sat,
Josh:
I mean, I mentioned they can be rolled out in 20 days, but 200 of these sites
Josh:
would enable a 20% increase in total U.S.
Josh:
Electricity generation without building a single new thermal generator.
Josh:
It's just by better utilizing what we already have.
Josh:
So if these things start to get deployed at scale, it can seriously make a huge
Josh:
impact in the amount of energy that we have and the cost per kilowatt more efficient,
Josh:
more importantly, that we always talk about,
Josh:
without actually needing to spin up more solar farms
Josh:
or gas turbines or whatever type of energy source we
Josh:
need because we have it it's just a matter of just deploying
Josh:
it more efficiently and that's exactly what mega pack does and that's why
Josh:
it's really it's so important because if this gets rolled out
Josh:
at scale we could see the cost per kilowatt drop very very
Josh:
much and also they can be rolled as data centers very
Josh:
very quickly so in the case that someone needs a lot of power well they don't
Josh:
have to go through hell and back to get some energy there they could just roll
Josh:
one of these bad boys out and and juice it all up okay so you just we kind of
Josh:
talked about why this is so important but i understand that they did some pretty
Josh:
amazing things in order to achieve this that you can hopefully walk us through well
Ejaaz:
Okay listen i'm a massive fan of pokemon and the main reason why i was is because
Ejaaz:
these pokemon cards have some of the coolest stats ever and it seems like we
Ejaaz:
have it for the mega pack 3 so introducing the pokemon card version of the Megapack 3,
Ejaaz:
5 megawatts per hour of usable AC energy.
Ejaaz:
Its weight is a casual 86,000 pounds.
Ejaaz:
This I found super interesting. It operates between minus 40 degrees Celsius to 60 degrees Celsius.
Ejaaz:
So basically, it's impervious to any temperature fluctuation.
Ejaaz:
You can have it pretty much manufactured anyway. That's a humongous range.
Ejaaz:
And 75% of the mass of a Megapack 3 is battery Now,
Ejaaz:
having come hot off the Apple episode last week, Josh, where that stat basically
Ejaaz:
rings true for the new iPhone Air that's going to be delivered to my building
Ejaaz:
in about a couple of days time,
Ejaaz:
I kind of see a trend developing here, which is pretty cool.
Ejaaz:
A single module weighs as much as a Cybertruck.
Ejaaz:
These things are much larger than I thought. I kind of thought this might be
Ejaaz:
like a jet pack type thing that astronauts might wear, but maybe that's in V3.
Ejaaz:
And it will partly use battery cells from Tesla's new seven gigawatt an hour
Ejaaz:
LFP battery facility in Nevada coming late online in 2025.
Ejaaz:
That's cool because we've spoken about this new battery facility quite a bunch
Ejaaz:
of times on this show, but we've never really kind of like understood maybe
Ejaaz:
the strategy of where he's feeding a bunch of these cells.
Ejaaz:
This is probably one of the major outlets that will get there as well.
Ejaaz:
Super cool. And I kind of understand now why Elon is buying a billion dollars
Ejaaz:
worth of additional shares this morning that news broke. Pretty hilarious.
Josh:
Stock price is doing pretty good as well. I think people are excited.
Josh:
This is one of those cases where if any company in the world were to achieve
Josh:
any of these things, it would be massive news.
Josh:
And there's one company that's at the forefront doing all of these things.
Josh:
I mean, the AI5 chip is an incredible feat of engineering.
Josh:
It's not done yet. They're finishing the design process. But assuming they do
Josh:
deliver like they always do, maybe it'll probably be late.
Josh:
But assuming they do, it's going to be a remarkable piece of tech.
Josh:
And it's going to run a ton of the very first humanoid robots that we see walking around.
Josh:
And now they're also rolling out this energy plan to subsidize the grid that's
Josh:
been faltering and hasn't been upkept correctly.
Josh:
And it's amazing to see the progress of some of these innovations and not only
Josh:
how quickly they're rolling it out, but how effective they are.
Josh:
I mean every single one of these new product rollouts is the best
Josh:
in class and i don't see that changing anytime soon so
Josh:
i it's a good time to be bullish it's a good time to be bullish on tesla on
Josh:
the entire ecosystem around them on the xai team who also benefits from this
Josh:
i mean there's a lot of all you start to see all the vertical integration how
Josh:
it all feeds into each other and they all help each other in this this really
Josh:
nice ecosystem and it gets me fired up i
Josh:
These things, when they work at scale, will change the world,
Josh:
particularly the megablock. I mean, this is huge.
Ejaaz:
For a long time, I think the idea of electricity or rather like solar-powered
Ejaaz:
electricity powering everything kind of seemed like a gimmick.
Ejaaz:
And the major reason for that wasn't because solar wasn't powerful enough.
Ejaaz:
It's because the distribution of it sucked.
Ejaaz:
And now we have a vehicle that can clearly distribute this energy way more efficiently,
Ejaaz:
50% of energy to be precise.
Ejaaz:
So I'm super excited about this. And hopefully, if you will listen to this,
Ejaaz:
this was educational for you and you learned something new about Elon Musk,
Ejaaz:
who seems to be releasing paradigm-shifting technologies every couple of weeks now, Josh.
Ejaaz:
I'm very bullish, Tesla. It is probably the stock that I own in the largest
Ejaaz:
quantity outside of some of my crypto stuff. Oh, nice. Okay.
Ejaaz:
Oh, yeah. Dude, how could I not be bullish? We talk about it about 50% of episodes. Oh, good.
Josh:
Well, you never know who's actually on board, right?
Ejaaz:
Like, I'm glad to hear this. No, I've got my skin, teeth, and bones in the game.
Ejaaz:
So I'm super pumped about this and I'm excited to see where it goes.
Ejaaz:
But again, if you think that there is a better topic that we could be discussing,
Ejaaz:
if there's something that Elon has released or is talking about that we've missed
Ejaaz:
and that you think we're not covering because our Tesla bags are consuming us
Ejaaz:
and there's a competitor that needs to be described,
Ejaaz:
we chat to us, our DMs are open, our comments are open.
Ejaaz:
We also like hearing feedback, particularly the feedback that
Ejaaz:
is spicy that disagrees with us that wants to hear different takes um josh and
Ejaaz:
i uh we like to fight but mainly we agree with a lot of the stuff that we discuss
Ejaaz:
we kind of discuss topics that we enjoy and if there's anything else that you
Ejaaz:
would like to hear about please reach out like subscribe share with your friends
Ejaaz:
and we will see you on the next one which.
Josh:
Will probably be meta connect big hardware episode coming this week so don't
Josh:
don't miss it it's gonna be a big one thank you guys for watching we'll see you guys in the next one
Music:
Music