00:00 Speaker A
OpenAI, you say, is coming for Tesla’s robot business. Talk about that and also, what what do you think OpenAI brings to the table that’s different? What’s Sam Altman’s competitive advantage there?
00:10 Speaker B
Uh, so two things in reverse order. What is OpenAI’s competitive advantage? I actually don’t think it’s significant, right? Um, you know, for my money, you know, the AI brain, you know, OpenAI, uh, uh Alphabet, uh, XAI, vis–vis, SpaceX, Tesla in its own data centers, right?
00:26 Speaker B
The the AI training and the AI brain of the robot probably isn’t the gating factor of of making useful robots that we can all use someday. Uh, the gating factor is probably manufacturing.
00:40 Speaker B
Right? So Tesla’s actually uh probably demonstrably a better manufacturer than OpenAI at this point. Um, so I think, you know, having a brain and having a robot product isn’t actually sort of the thing you need. I think you need to be able to make these things at scale. And if you can make them cheaply, you’ll have a good business. That’s Elon’s bet.
00:53 Speaker B
Um, I I think two things. I think that the OpenAI announcement shows how just everything is converging around AI, right? So physical AI, you know, we all have AI, physical AI, whether it’s robotaxis or robots, all of these businesses are sort of morphing into each other.
01:06 Speaker B
It is why Tesla is sort of one of the Mag 7 and, you know, the the ultimate expression these days of physical AI in the market. If you want to invest in robots and robo taxis in America, you you only have a couple of choices and one of them is Tesla. Uh, and one of them’s led by Elon who’s a visionary and people like that.
01:25 Speaker B
Um, you know, so that’s why, you know, it’s in that group, it’s in the trillion dollar group. It’s why it trades for 200 times earnings. Um, you know, I do like when other companies sort of jump into Elon’s spaces because it sort of justifies his vision, if that makes sense.
01:38 Speaker B
You know, Nvidia talks about robots, Nvidia has uh self-driving car technology that they will license to other people. Uh OpenAI wants to make physical AI applications like robots just like Elon does. So you can see how the ecosystem develops.
01:50 Speaker B
So in one respect, it sort of justifies and makes people feel better about Tesla. And in the other respect, it makes uh for some competition. But again, I think manufacturability of robots is what’s going to win that war and that’ll develop over the next five to 10 years.
