Meta, Tesla's AI investments to impact semiconductor market—Here's how
Business
Meta and Tesla are going all-in on artificial intelligence.
Meta just announced a massive $135 billion push to speed up AI innovation, while Tesla is putting $20 billion this year toward pursuits including AI, self-driving vehicles and robotics and adding another $2 billion for Elon Musk's xAI startup.
It's a clear sign both companies want to lead the next wave of smart tech.
Big money in AI means more demand—and more chip shortages
All this spending is great news for chip makers like Samsung and SK Hynix, who are seeing profits rise as demand for AI hardware explodes.
But there's a downside: it's making global chip shortages even worse.
Elon Musk has flagged the risk of hitting a "chip wall" and says Tesla might build its own semiconductor factory just to keep up.