Tesla Declares War on AI Chip Giants -- Elon Musk Vows Yearly Breakthroughs

Tesla TSLA boss Elon Musk recently said his company aims to outpace rivals in AI chip production, pledging a cadence of new designs and faster scale-up.

He posted on X that Tesla plans to deliver a new AI chip design to volume production every 12 months and expects to eventually make chips at higher volumes than other AI chipmakers combined.

Musk said Tesla has already designed and deployed millions of AI chips across its vehicles and data centers, and listed its current lineup: AI4 is in cars, AI5 is nearing deployment and work on AI6 has begun. He added that the chips will support Optimus and advanced vehicle safety, and could enable new medical and robotics uses.

Major AI chip rivals include Nvidia NVDA, AMD AMD, Intel INTC and Broadcom AVGO. Analysts say Tesla's push may intensify competition in AI hardware and data-center markets, but caution that scaling annual chip launches and matching established ecosystems will be a substantial operational challenge. Market watchers will monitor production ramp and customer traction.