Musk's AI Vision: xAI Targets Foundational Intelligence, Optimus Production at $20,000

Jensen Huang, CEO of Nvidia, has highlighted Elon Musk's concentrated efforts in the most critical areas of artificial intelligence, specifically pointing to xAI's work on foundational cognitive intelligence, Tesla's advancements in autonomous vehicles, and the development of the Optimus humanoid robot. Huang expressed strong optimism regarding the future of AI under Musk's leadership, as conveyed in a recent tweet by Tesla Owners Silicon Valley. This statement underscores the ambitious scope of Musk's ventures, aiming to redefine human-machine interaction and intelligence.

xAI, founded by Elon Musk in 2023, is dedicated to developing "foundational cognitive intelligence" and Artificial General Intelligence (AGI) with the mission to "understand the true nature of the universe." The company recently released Grok 4, its most advanced model, featuring native tool use and real-time search integration. xAI aims for its foundational intelligence to serve as the base layer for all application-level AI, the strategic brain for humanoid robots, and the decision engine for autonomous driving, with Musk estimating full AGI by 2029.

Tesla's commitment to autonomous vehicles is evident in its ongoing development of Full Self-Driving (FSD) technology and plans for robotaxi services. The company expects to begin operating robotaxis in select US cities by the end of 2025, with production of the Cybercab, a vehicle specifically designed for self-driving, slated for next April. This initiative leverages Tesla's extensive real-world driving data and AI expertise to create a scalable autonomous transportation network.

The Optimus humanoid robot, also known as Tesla Bot, is another cornerstone of Musk's AI strategy. Designed to perform dangerous, repetitive, and boring tasks, Optimus has shown significant progress, with Generation 2 featuring improved hands and movements. Tesla aims for mass production of Optimus, with a target of approximately 1 million units annually at a cost of around $20,000 per unit, potentially entering limited production in 2025. Musk envisions Optimus becoming a product with "extraordinary potential," surpassing even Tesla's vehicle business in scale and impact.