Tesla Unveils AI5 Chip Built in the U.S., Musk Says It Won’t Replace Nvidia — Yet
Tesla is ramping up its artificial intelligence ambitions with a powerful new chip — the AI5 — that will be produced at Samsung’s Texas facility and TSMC’s Arizona foundry, according to CEO Elon Musk.
During the company’s Q3 earnings call, Musk revealed that Tesla aims for “excess production” of the AI5 chip, ensuring enough supply for both its electric vehicles and humanoid robots — and potentially even its AI data centers.
“Our goal is to have an oversupply of AI5 chips,” Musk said, emphasizing Tesla’s push toward in-house AI hardware independence.
⚙️ Inside Tesla’s AI5 Chip Strategy
Tesla previously relied on Nvidia’s Drive chips before shifting to its own silicon in 2019. While Tesla still uses Nvidia’s GPUs for AI model training, Musk made it clear that the new AI5 chip represents Tesla’s next leap in autonomy and robotics computing.
“We’re not replacing Nvidia — we’re combining strengths,” Musk noted. Tesla’s computing infrastructure now matches the capacity of 81,000 Nvidia H100 chips, a sign of how deep its AI operations have become.
The AI5 is designed to power Autopilot, Full Self-Driving (FSD) features, and robotic applications, processing complex real-time signals that enable advanced vehicle automation.
Designed for Tesla — and Tesla Alone
Since Tesla is the only customer for the AI5 chip, its engineers have been able to simplify and streamline the design, optimizing every layer for Tesla’s ecosystem.
“Designing for one customer lets us remove unnecessary components and boost efficiency,” Musk explained.
He added that the AI5 could potentially deliver “the best performance per dollar” in AI computing — up to 10x more efficient than competing chips. The chip’s architecture eliminates outdated GPUs and signal processors, resulting in a leaner, faster system.
Built in America, Designed for the Future
Production of the AI5 chip in Texas and Arizona aligns with Tesla’s commitment to U.S.-based semiconductor manufacturing, a trend also supported by other major tech players investing in domestic chip capabilities.
Samsung previously announced a $16.5 billion deal with an unnamed client in 2024, later confirmed by Musk to be Tesla. The AI6 chip, Tesla’s next-generation processor, will also be made by Samsung in the U.S.
Tesla Joins the Custom Chip Race
Like Google, Amazon, and Microsoft, Tesla is joining the elite group of companies building custom AI processors to reduce dependency on Nvidia and tailor chips for specific workloads.
Meanwhile, Musk’s AI venture, xAI, continues to be one of Nvidia’s major customers, currently constructing a massive supercomputing center in Memphis, Tennessee, featuring Grace Blackwell chips for high-performance AI development.
AI5: The Next Frontier in Tesla’s Vision
The AI5 chip marks a significant milestone in Tesla’s quest to dominate the intersection of autonomous driving, robotics, and AI computing. By blending innovation in-house while leveraging industry giants like Samsung and TSMC, Musk’s strategy suggests Tesla is building the foundations for a fully AI-driven ecosystem — without completely severing ties with Nvidia.
“Nvidia has done an incredible job,” Musk said. “But we’re focused on radical simplicity — that’s Tesla’s path forward.”
