Tech billionaire Elon Musk just had a live streamed conversation with Stagwell chairman Mark Penn on Wednesday, talking about various topics, including AI, humanoid robots, FSD, budget savings, and Neuralink upgrades. Here are the key takeaways:

Synthetic Data Contributes Most in AI Era

We've now exhausted basically the cumulative sum of human knowledge in AI training, Musk said during the interview. That happened basically last year. 

Musk suggested that synthetic data — data generated by AI models themselves — is the path forward. The only way to supplement is with synthetic data, where the AI creates, he said. With synthetic data, [AI] will sort of grade itself and go through this process of self-learning.

Target 1 Million Humanoids by 2027

Musk is increasingly banking on the EV giant's FSD capabilities and the Optimus humanoid robot to drive the narrative around Tesla shares. 

humanoid robots will be the biggest product in history, and the eventual ratio of humans to robots could end up at 5:1, corresponding to 30 billion robots operating worldwide, Musk said. He also emphasized that Tesla aims to produce between 50,000 and 100,000 units of the Optimus robot in 2026 and then 10x it again the following year, which corresponds to a 2027 production target of between 500,000 and 1 million units.

Tesla's FSD Will Be Safer Than Human Driving by Q2

Musk said that the company expects FSD to drive better than an average human driver in terms of the incidence of accidents by the second quarter of this year, and to become 10 times safer in due time, eventually reaching a point where it will no longer crash. Tesla employees are already testing autonomous Full Self-Driving trials internally.

$2 Trillion in Savings is Ambitious, but $1 Trillion is Achievable

I think we'll try for $2 trillion. I think that's the best-case outcome, Musk said. But I do think that you kind of have to have some overage. I think if we try for $2 trillion, we've got a good shot at getting 1, he said, referring to $1 trillion in spending cuts.

More Patients and Upgrades for Neuralink

Currently, three patients have had Neuralink brain-machine interface chips implanted, Musk said. The company has upgraded the device, increasing the number of electrodes, enhancing bandwidth, and improving battery life. We plan to implant upgraded Neuralink devices in 20-30 patients within this year and the next, Musk said.