Will AI create the world’s first trillionaire?\u00a0Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need.\u00a0Continue \u00bb<\/a><\/p>\n Musk told Baron Capital founder Ron Baron that he’s building an artificial intelligence (AI) chip that will be “two to three times better than Nvidia” and at 10% of the cost. Should Nvidia investors be worried?<\/p>\n Musk wasn’t joking about his plans to go head-to-head against Nvidia. He told Baron in the virtual interview, “I have the entire physical design of the chip laid out in memory — I can visualize the whole thing.” And he has already revealed how he intends to build this superchip.<\/p>\n In March 2026, Tesla announced plans to collaborate with SpaceX and xAI (now part of SpaceX) to build TeraFab, billed as “the largest chip manufacturing facility ever.” Intel<\/a> (NASDAQ: INTC) joined the team in April.<\/p>\n Tesla already designs its own AI inference chips but outsources manufacturing. To achieve Musk’s vision, it will need highly specialized fabrication equipment. That’s where ASML (NASDAQ: ASML) enters the picture.<\/p>\n Musk spoke with ASML CEO Christophe Fouquet last week in an event exclusively for ASML employees. This wasn’t their first conversation, though. Fouquet confirmed in May that he had talked with Musk about TeraFab and SpaceX, stating, “He’s very serious about all those projects.”<\/p>\n Threatening Nvidia’s dominance? <\/p>\n But could Musk’s proposed chip really threaten Nvidia’s dominance in the market? Maybe, but it won’t be easy.<\/p>\n Developing AI chips that are two to three times better than Nvidia’s industry-leading Blackwell GPUs is possible with breakthroughs in architecture, specifically in memory bandwidth. However, doing it at one-tenth the cost could prove daunting, to say the least.<\/p>\n Perhaps the most difficult hurdle for Musk’s Tesla\/SpaceX alliance is that the goalpost will continually move. Nvidia isn’t resting on its laurels. The chipmaker is investing heavily in developing more powerful, cost-effective chips. As a case in point, Nvidia’s new Vera Rubin chips deliver up to 10 times more tokens per megawatt than the company’s GB200 chips based on the Blackwell architecture.<\/p>\n Story Continues <\/p>\n Another factor to consider is that TeraFab may not join Nvidia’s competitors. Even if Musk successfully builds a chip superior to Nvidia’s, SpaceX and Tesla could be the only customers.<\/p>\n Tesla’s announcement about the chip manufacturing facility referenced SpaceX’s enormous demand for launching “millions of tons of mass into orbit” and the massive number of chips needed for Tesla Optimus robots. The post on X (formerly Twitter) stated that the need is “more than all the chip manufacturers in the world combined can provide today, or even by 2030 (based on projected production growth).”<\/p>\n Pay attention, but don’t panic <\/p>\n Should Nvidia investors be worried about Musk’s ambitious strategy? I don’t think so. The trillionaire has a history of sometimes overpromising and underdelivering. An idea in his mind is a long way from a real product that could dethrone Nvidia.<\/p>\n That said, Musk shouldn’t be ignored. Despite his mixed track record, he has still managed to accomplish feats that some viewed as impossible. And if Musk makes significant progress in building a super-fast, super-cheap AI chip, the threat alone could hurt Nvidia’s margins.<\/p>\n In some ways, though, Musk’s plans to build a new chip could be viewed as good news for Nvidia. In particular, it may validate Nvidia CEO Jensen Huang’s prediction that his company will generate at least $1 trillion in sales through 2027. If Musk anticipates such a massive need for SpaceX and Tesla over the next few years, Huang’s forecast may not be far-fetched.<\/p>\n Should you buy stock in Nvidia right now? <\/p>\n Before you buy stock in\u00a0Nvidia, consider this:<\/p>\n The Motley Fool\u00a0Stock Advisor\u00a0analyst team just identified what they believe are the\u00a010 best stocks<\/a>\u00a0for investors to buy now\u2026 and\u00a0Nvidia\u00a0wasn\u2019t one of them.\u00a0The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years.<\/p>\n Consider when\u00a0Netflix\u00a0made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you\u2019d have $433,268!*\u00a0Or\u00a0when\u00a0Nvidia\u00a0made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation,\u00a0you\u2019d have $1,259,391!*<\/p>\n That performance is why people listen. With a track record of\u00a0beating the S&P 500 by nearly 5x,\u00a0Stock Advisor\u00a0offers a distinct advantage. Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built for the long haul.<\/p>\n See the 10 stocks \u00bb<\/a><\/p>\n *Stock Advisor returns as of June 16, 2026. <\/p>\n Keith Speights<\/a> has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML, Intel, Nvidia, and Tesla. The Motley Fool has a disclosure policy<\/a>.<\/p>\n![\"AI](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2026\/06\/27505db9886bc3dd6f3275646ccfaa37.jpeg\")
Image source: Getty Images. Musk’s big plans <\/p>\n