Tesla finishes new AI5 chip as plans begin for the next one

Tesla is approaching the last phase of design work for its AI5 chip, according to a statement from Chief Executive Officer Elon Musk. The update was posted Sunday on X, where Musk outlined progress on the company’s next-generation semiconductor plans for its vehicles and data centers.

Musk said Tesla aims to release a new artificial-intelligence chip design for large-scale production every 12 months. He noted that the current chip in Tesla cars is the AI4. The company is close to taping out the AI5, a key milestone that marks the completion of design work before manufacturing. He also confirmed that development of the AI6 chip has begun.

The CEO described the effort as part of Tesla’s drive to expand its semiconductor capabilities. Musk, who remains the world’s richest person, said the yearly design cycle is intended to speed the introduction of new hardware across Tesla’s products and infrastructure.

Samsung Electronics Co. announced in July that it had signed a $16.5 billion agreement to manufacture Tesla’s AI chips. The deal covers multiple years and includes production at a new Samsung facility in Texas. At the time of the announcement, Musk said that the plant would be used to make the AI6 chip.

Musk reiterated Tesla’s long-term ambitions in the Sunday post. He said the company expects to produce its chips in higher volumes than all other AI chip makers combined. He added the remark without further detail.

Tesla has been developing custom chips to support its work in autonomous driving and advanced computing. The company has highlighted in earlier statements that vertically integrated hardware is central to its strategy for both vehicles and data centers. The latest update indicates that Tesla expects faster development cycles as it moves from AI4 to AI5 and onward to AI6.

Musk did not provide a timeline for when the AI5 would enter production or when the AI6 would reach the tape-out stage. He said only that the design work was progressing and that further updates would follow.