TLDR
- Tesla AI5 chip design is almost finished with AI6 development already begun
- Company aims for 9-month design cycles for future chip generations
- TSMC will manufacture AI5 chips with high-volume production starting in 2027
- Samsung Electronics secured $16.5 billion contract to produce A16 chips in Texas
- Chips will power Tesla vehicles, Optimus robots, and Neuralink devices
Tesla CEO Elon Musk shared on Saturday that the electric vehicle company has almost completed its AI5 self-driving chip design. He posted on X that AI6 chip development has already started in its early phases.
The automaker is working toward a 9-month design cycle for upcoming chip generations. This timeline will cover AI7, AI8, AI9, and future versions.
Taiwan Semiconductor Manufacturing Company will handle AI5 chip production. In November, Musk said high-volume manufacturing would launch in 2027.
These new chips will take the place of AI4 chips currently running in Tesla cars. The upgrade marks another step in the company’s push to build custom processors for self-driving technology.
Tesla signed a $16.5 billion deal with Samsung Electronics in July for A16 chip manufacturing. Production will happen at Samsung’s Texas facility.
Production Timeline and Performance
The AI6 chips should deliver about twice the performance of AI5 chips. Large-scale production for AI6 is expected around mid-2028.
Both TSMC’s Arizona factory and Samsung’s Texas plant will produce the chips. This two-location approach spreads out manufacturing capabilities.
Musk said these chips will reach the highest production volumes of any AI chips globally. He used the announcement to recruit talent for Tesla’s chip team.
A limited number of AI5 units might be made in 2026. Full high-volume production stays on track for 2027.
Chip Applications and Strategy
The chips won’t just go into vehicles. They’ll also run in Neuralink brain-computer interfaces and Optimus humanoid robots.
This chip program helps Tesla rely less on Nvidia. Nvidia holds the top position in the AI chip market right now.
Tesla keeps moving ahead with its custom chip plans. The company stays committed to developing its own silicon for AI needs.
The 9-month design cycle goal applies to all future chip versions. This schedule would let Tesla make quick improvements between generations.
Manufacturing capacity across Texas and Arizona will meet production requirements. Having facilities in two states provides backup options for chip making.
Musk’s recruitment message invited engineers to work on what he called the world’s highest-volume AI chips. He emphasized the scale of production Tesla plans to achieve.
The AI5 design completion puts Tesla closer to its 2027 production target. The company continues developing multiple chip generations at once.
