Elon Musk announced that Tesla is close to completing the design of its next-generation AI5 chip while starting development on AI6, aiming to produce a new chip annually. The company has deployed millions of current AI4 chips in vehicles and data centers, positioning it as a leader in real-world AI. Musk is recruiting top talent and emphasized ambitious production goals exceeding all competitors combined.
Elon Musk, CEO of Tesla, revealed on November 23, 2025, via posts on X that the company has maintained an advanced AI chip and board engineering team for many years. This team has designed and deployed several million AI chips in Tesla's cars and data centers, enabling leadership in real-world AI applications such as Full Self-Driving and neural network training. The current generation in vehicles is AI4.
Musk stated that Tesla is 'close to taping out AI5'—the final design stage before manufacturing—and has begun early work on AI6. 'Our goal is to bring a new AI chip design to volume production every 12 months,' he wrote. 'We expect to build chips at higher volumes ultimately than all other AI chips combined. Read that sentence again, as I’m not kidding.' AI5 is projected to be up to 50 times more performant than AI4, with applications in vehicles, robotics like Optimus, and data centers. Volume production of AI5 is not expected until mid-2027, potentially delaying unsupervised autonomy in upcoming Cybercab robotaxis, which may initially use AI4 hardware and include steering wheels and pedals if needed.
Manufacturing partnerships include TSMC for AI5 production in Taiwan and Arizona, and a $16.5 billion deal with Samsung announced in July 2025 for AI6 at a new Texas plant. Musk, deeply involved in the process, meets the engineering team every Tuesday and Saturday, though Saturday sessions will end soon after AI5 tape-out.
To expand the team, Musk invited exceptional AI chip designers to email three bullet points evidencing their abilities to AI_Chips@Tesla.com, particularly those applying cutting-edge AI to chip design. He highlighted positive impacts: 'These chips will profoundly change the world in positive ways, saving millions of lives due to safer driving and providing advanced medical care to all people via Optimus.'
Tesla's stock (TSLA) closed at $391.09 on November 22, 2025, down 1.05% for the day and over 3% year-to-date, reflecting mixed investor sentiment on the timeline for AI and autonomous driving revenue despite high valuations at 180 times 2026 earnings estimates. Analysts maintain a Hold consensus, with an average price target of $383.37.
