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I bet Tesla's decision to design and manufacture their own machine learning chips for their "self-driving" functionality is looking pretty smart now. They have

by eloff 6y ago

I bet Tesla's decision to design and manufacture their own machine learning chips for their "self-driving" functionality is looking pretty smart now. They have their own contracts with the fab companies to produce them. These are not the only kinds of chips that go into cars by a long shot these days, but it is the biggest ticket one. That was a multi-billion dollar, very bold and risky bet that paid off. How many car companies do you know where they decided to take on industry leaders like Nvidia and Intel and actually produce a better product? That's really quite remarkable. If GM said tomorrow that they were going to build better machine-learning chips than Nvidia, we'd all get a good laugh at that.

baybal2 6y ago
You see Tesla's BOM? I bet thet have the very same problem, it's not only the dashboard computer they need chips for.
- eloff 6y ago
  That is highly possible, I did allude to that.
- WanderPanda 6y ago
  But I get a sensation that they are more into off the shelf parts than traditional automakers. SpaceX is also known to use consumer grade chips in their rockets
  - eloff 6y ago
    They're also big on doing things themselves if they can't get a supplier at the right price.
Plasmoid2000ad 6y ago
Maybe. Things that succeed in the face of an issue no one predicted don't really stand out as smart - just lucky. It might prove smart in the long run for many other reasons of course. For all we know, Tesla could be locked into TSMC like everyone else, while Nvidia has their current high-end chips on Samsung as well relationships with TSMC.
- eloff 6y ago
  Luck often looks smart in hindsight. You're right of course that it was lucky. I think it was a smart decision for many reasons, that worked out well. It was also a big risk.
- MangoCoffee 6y ago
  Not TSMC but Samsung. Tesla have wafer agreement with Samsung for 14nm and 5nm.
- jryle70 6y ago
  The beauty of luck is that it can be used practically any time as explanation for success. Tesla bet big on vertical integration. Who knows what they took into consideration but it was surely bold since they were not as flush with cash as they are now.
mhh__ 6y ago
> we'd all get a good laugh at that. And who are we to laugh?
clouddrover 6y ago
> These are not the only kinds of chips that go into cars by a long shot these days, but it is the biggest ticket one Still can't build the car without the rest of them: https://electrek.co/2021/02/25/tesla-shuts-down-model-3-production-line-amid-chip-shortage/ https://electrek.co/2021/02/25/tesla-shuts-down-model-3-prod... Tesla said their ambition was to out-Toyota Toyota in manufacturing. They haven't: https://www.reuters.com/article/us-japan-fukushima-anniversary-toyota-in-idUSKBN2B1005 https://www.reuters.com/article/us-japan-fukushima-anniversa...

by eloff 6y ago

baybal2 6y ago

You see Tesla's BOM? I bet thet have the very same problem, it's not only the dashboard computer they need chips for.

eloff 6y ago
That is highly possible, I did allude to that.
WanderPanda 6y ago
But I get a sensation that they are more into off the shelf parts than traditional automakers. SpaceX is also known to use consumer grade chips in their rockets
- eloff 6y ago
  They're also big on doing things themselves if they can't get a supplier at the right price.

Plasmoid2000ad 6y ago

Maybe. Things that succeed in the face of an issue no one predicted don't really stand out as smart - just lucky. It might prove smart in the long run for many other reasons of course. For all we know, Tesla could be locked into TSMC like everyone else, while Nvidia has their current high-end chips on Samsung as well relationships with TSMC.

eloff 6y ago
Luck often looks smart in hindsight. You're right of course that it was lucky. I think it was a smart decision for many reasons, that worked out well. It was also a big risk.
MangoCoffee 6y ago
Not TSMC but Samsung. Tesla have wafer agreement with Samsung for 14nm and 5nm.
jryle70 6y ago
The beauty of luck is that it can be used practically any time as explanation for success. Tesla bet big on vertical integration. Who knows what they took into consideration but it was surely bold since they were not as flush with cash as they are now.

mhh__ 6y ago

> we'd all get a good laugh at that. And who are we to laugh?

clouddrover 6y ago

> These are not the only kinds of chips that go into cars by a long shot these days, but it is the biggest ticket one Still can't build the car without the rest of them: https://electrek.co/2021/02/25/tesla-shuts-down-model-3-production-line-amid-chip-shortage/ https://electrek.co/2021/02/25/tesla-shuts-down-model-3-prod... Tesla said their ambition was to out-Toyota Toyota in manufacturing. They haven't: https://www.reuters.com/article/us-japan-fukushima-anniversary-toyota-in-idUSKBN2B1005 https://www.reuters.com/article/us-japan-fukushima-anniversa...