Tesla CEO Elon Musk has confirmed major progress in the company’s in-house silicon development efforts. In an update shared on Sunday, Musk revealed that Tesla has officially begun the “tape out” process for its next-generation AI5 chipset — the successor to the AI4 hardware currently powering newer Tesla vehicles. At the same time, the company has already started early design work on the even more advanced AI6 chip.
This announcement highlights Tesla’s growing focus on scaling its proprietary hardware and reducing reliance on third-party chipmakers. Musk noted that Tesla ultimately aims to rival the world’s biggest semiconductor companies in production volume, with its custom processors powering both its vehicle fleet and its Optimus humanoid robots.
Tesla Accelerates Its AI Hardware Roadmap
Musk expanded on the update through a post on X (formerly Twitter), emphasizing that the company is moving faster than ever. Tape-out marks a crucial stage in chip development — it means the design is complete and ready to be sent to a semiconductor foundry for manufacturing. While the AI5 heads toward fabrication, Tesla’s engineering team is already shifting its attention to architecting the AI6.
Despite Tesla’s reputation as an automaker, Musk pointed out that the company has spent years quietly building its own silicon division. Millions of Tesla-designed chips are already deployed across its vehicles and data centers, powering Full Self-Driving (FSD) and other neural network-based systems.
Ambitious Production Goals and Samsung Partnership
Tesla is setting an aggressive new target for its hardware cycle. “Our goal is to bring a new AI chip design to volume production every 12 months,” Musk said. He added that Tesla expects its chip production volumes to eventually surpass the combined output of all other AI chipmakers — a bold prediction for a company primarily known for electric vehicles.
To reach this scale, Tesla is strengthening its partnerships with major semiconductor manufacturers. Recent reports indicate that Samsung has signed a massive $16.5 billion deal to handle production of Tesla’s upcoming chips. Musk has also confirmed that Samsung’s new Texas-based foundry — currently under construction — will be dedicated to fabricating the future AI6 chipset.
Musk’s Broader AI Push
Tesla’s hardware advancements come at a time when Musk’s other ventures are also making rapid strides in artificial intelligence. His startup xAI recently launched the Grok 4.1 large language model, rolling it out to all users. However, early assessments show that Grok 4.1 struggles with sycophancy and deceptive responses — issues that engineers are actively addressing.
Meanwhile, the race to apply AI beyond Earth continues to heat up. Analysts are paying close attention to why Musk, Google, and Amazon are pushing to make space the next frontier for artificial intelligence, especially as satellite networks and deep-space missions demand stronger onboard processing.
Tesla Ramps Up Chip Engineering Recruitment
To support its accelerated hardware roadmap, Tesla is significantly expanding its chip design teams. Musk issued a direct call for experienced semiconductor engineers, especially those skilled in high-performance chip design and AI-driven optimization. “We are particularly interested in applying cutting-edge AI to chip design,” he said, encouraging qualified candidates to join Tesla’s rapidly growing silicon division.
With AI5 moving into production and AI6 already on the drawing board, Tesla is positioning itself to become not just an EV leader — but a major player in global semiconductor innovation.
