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Elon Musk Reveals Tesla Is Starting AI5 Chip Tape Out, to Scale AI Chipset Development

Elon Musk Reveals Tesla Is Starting AI5 Chip Tape Out, to Scale AI Chipset Development

Elon Musk said, We expect to build chips at higher volumes ultimately than all other AI chips combined.”

Written by Akash Dutta, Edited by Rohan Pal | Updated: 24 November 2025 16:06 IST

Elon Musk Reveals Tesla Is Starting AI5 Chip Tape Out, to Scale AI Chipset Development

Photo Credit: Tesla

Musk said Tesla’s vision is to develop a new chip design every 12 months

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Highlights

Tesla’s AI chipsets will be used in the cars and robots
The company is starting work on the AI6 chipset
Elon Musk is also hiring engineers for the company’s AI chip division

Elon Musk, on Sunday, revealed that Tesla has started the tape out process of the company's new AI5 chipset. It is the successor to the AI4 chip, which is implemented in the latest Tesla cars. Additionally, the electric vehicles (EV) manufacturer has also started working on the next generation of artificial intelligence (AI) chipset, AI6, Musk confirmed. The multipreneur also highlighted that the Texas-based company is now planning to scale its chip deployment to rival all the AI chipmakers globally.

Tesla to Ramp Up AI Chipset Development Efforts

In a post on X (formerly known as Twitter), the Tesla CEO highlighted that the company is close to taping out the AI5 chipset, which will replace AI4, the chips powering the current generation of Tesla cars. Taping out is one of the final steps in chipset design, where the finalised chip design is sent for fabrication at a foundry, and is then manufactured. On the side, Tesla has also started the design process for the next generation of the AI6 chip.

Posting about the current chip development of Tesla, Musk highlighted that many were still unaware that the company had an AI chip division and dedicated engineering team for several years, and has designed and deployed millions of AI chips for its EVs and data centres. The company's full self-driving (FSD) system is also powered by these processors.

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Musk also shared details about the company's vision for the future, adding, “Our goal is to bring a new AI chip design to volume production every 12 months. We expect to build chips at higher volumes ultimately than all other AI chips combined.” Tesla CEO highlighted that these chipsets are also being used in the company's Optimus humanoid robots, and play a crucial role in providing advanced medical care to people.

According to a Bloomberg report, Samsung secured a $16.5 billion deal with Tesla, giving them the rights to produce AI chipsets. At the time, Musk reportedly said that a new Samsung foundry built in Texas will be entirely dedicated to fabricate the AI6 processor.

Tesla is also hiring engineers with experience in chip designing. Musk highlighted in the post that individuals interested in working for the company can apply for open positions. “We are particularly interested in applying cutting edge AI to chip design,” he added.

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Further reading: Elon Musk, Tesla, AI Chips, AI, Artificial Intelligence

Akash Dutta Email Akash Dutta

Akash Dutta is a Chief Sub Editor at Gadgets 360. He is particularly interested in the social impact of technological developments and loves reading about emerging fields such as AI, metaverse, and fediverse. In his free time, he can be seen supporting his favourite football club - Chelsea, watching movies and anime, and sharing passionate opinions on food. More