This goes a little deeper and a shade more offensive, because of the second claim - that AI will generate binaries directly with no source code. This claim is mostly being made for sensational hypewank reasons, like many big claims Elon makes, but I also think he genuinely does not understand why source code is the thing allowing LLMs to cling to life as a technology that doesn't always entirely fuck up.
Source code makes such great training material because it's full of recorded intent, and can be cross-referenced with documentation that is ALSO full of recorded intent. Sloppers learned early that having the LLM "plan" first (fill the context window with prediction-generated intent material) improves code gen quality.
Binaries, as generated artifacts, make crappy training material, because the intent is all stripped out - quite aggressively on release builds. They are unconstrained by even the simulation of meaning. That's why nobody does this, even in Slopper Culture.
8/9