Tesla's $25bn AI bet

Despite missing revenue estimates in the first quarter, Tesla is pivoting its core strategy toward an AI-first future.

Elon Musk informed investors that the company will utilize Intel's upcoming 14A manufacturing process for its Austin-based Terafab project.

The aggressive spending plan has raised concerns among some analysts who worry about the lack of high-margin business to underpin such a massive investment.

Simultaneously, Tesla is addressing hardware limitations in millions of older vehicles that currently lack the memory bandwidth required for unsupervised autonomous driving.