Tesla builds supercomputer with in-house chips to rival Nvidia

Tesla is constructing a new supercomputer powered entirely by its own hardware, bypassing Nvidia GPUs. The project aims to surpass Nvidia's capabilities and extend AI computing to space-based applications worldwide. Elon Musk has confirmed the restart of work on this, Tesla's largest supercomputer to date.

Tesla's latest initiative in hardware development centers on a supercomputer designed to leverage in-house chips exclusively, eliminating reliance on Nvidia's GPUs. This move signals Tesla's ambition to challenge Nvidia's dominance in the AI hardware market while pioneering global space-based AI compute solutions.

According to reports, the supercomputer represents a significant escalation in Tesla's chip strategy. Elon Musk has publicly confirmed that the company has resumed efforts on what will be its most ambitious computing project yet. The focus on proprietary hardware underscores Tesla's push for self-sufficiency in advanced computing technologies.

While details on the supercomputer's specific applications remain emerging, the emphasis on space-based AI compute suggests potential integrations with Tesla's broader ecosystem, including satellite networks or orbital data processing. This development aligns with Tesla's ongoing innovations in AI and autonomous systems, positioning the company as a formidable player beyond electric vehicles.

The project's timeline points to an active phase as of early 2026, highlighting Tesla's accelerated pace in hardware innovation.

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Elon Musk announces Tesla AI5 chip nearing completion at a conference, with roadmap visuals of AI chips, cars, and robots on screen.
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Tesla's AI5 chip design nears completion as Musk outlines rapid roadmap

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Elon Musk announced that Tesla's next-generation AI5 chip is almost complete, with early work already underway on AI6 and plans for a nine-month development cycle for future iterations. The chips are expected to become the highest-volume AI processors globally, powering vehicles, robots, and more. This update highlights Tesla's aggressive push in AI hardware for autonomy and beyond.

Elon Musk has revealed Tesla's ambitious plans for its next generations of AI chips, extending from self-driving vehicles and robots to space-based computing. In a post on X, he outlined the capabilities of AI4 through AI7, emphasizing significant advancements in safety and applications. This roadmap highlights Tesla's push into diverse AI ecosystems beyond automotive uses.

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Tesla is introducing the AI5 chip, a custom-designed processor aimed at enhancing its AI capabilities across vehicles and robotics. This in-house innovation promises significant performance improvements over previous models. The chip will be produced by Samsung using cutting-edge technology.

Nvidia CEO Jensen Huang announced at CES 2026 that the company's next-generation AI superchip platform, Vera Rubin, is now in full production. The platform, first revealed in 2024, promises to reduce costs for training and running AI models. Customers can expect deliveries later this year.

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Tesla's shares dropped around 3% on Tuesday following Nvidia's announcement of new open-source AI models for autonomous driving. The 'Alpamayo family' aims to enable humanlike thinking in vehicle decision-making. Investors reacted amid concerns over intensifying competition in the self-driving sector.

Elon Musk announced on February 2, 2026, that his SpaceX company has acquired his AI startup xAI, aiming to build orbital data centers to meet surging electricity demands for artificial intelligence. The merger integrates AI, rockets, and satellite technology to create a vertically integrated innovation engine. Musk envisions this enabling advancements like Moon bases and Mars colonization.

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Nvidia CEO Jensen Huang has dismissed reports suggesting the company is backing away from a significant investment in OpenAI. Speaking in Taipei, Huang emphasized his support for the AI firm and indicated the deal could be Nvidia's largest ever, though not approaching the previously discussed $100 billion figure. This comes amid earlier announcements and recent speculation about the partnership's progress.

 

 

 

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