Elon Musk confirms Tesla and SpaceX AI will keep ordering Nvidia chips despite AI5 development

Elon Musk says SpaceX AI, Tesla will keep ordering Nvidia chips at scale - The Economic Times

Tesla is designing its ⁠fifth-generation AI ⁠chip to power its autonomous ambitions. The chips power Tesla's autonomous driving systems, including the Full Self-Driving software.Billionaire Elon Musk said late on Wednesday that his companies SpaceX AI and Tesla expect to continue ordering Nvidia chips at scale. Tesla is designing its ⁠fifth-generation AI ⁠chip to power its autonomous ambitions. The chips power Tesla's autonomous driving systems, including the Full Self-Driving software. In a separate post on X, Musk said that the AI5 chip can be used ⁠for training in data centers but is primarily optimized for AI edge ⁠compute in humanoid robot Optimus and Robotaxi. The Tesla CEO also said that the company expects a wide release of an update to its Full Self-Driving (Supervised) software in a few weeks. Musk said last Saturday that Tesla's Terafab project to make artificial intelligence chips will launch in seven days. Last month, SpaceX ⁠acquired xAI in an all-stock deal ahead of a potential blockbuster initial public offering for SpaceX later this year. This is Musk's first post referring to the combined entity as SpaceX AI.

Elon Musk Says Tesla's AI5 Self-Driving Chip Will 'Punch Above Its Weight,' Sees Data Center Use - Tesla (NASDAQ:TSLA)

AI5 Will Punch Far Above Its Weight Responding to Beisel, Musk shared his take on the matter. "AI5 will punch far above its weight," he said, outlining that its capabilities were possible because Tesla aims to "make maximally effective use of every circuit." Musk also said that while the upcoming chip could see applications in data centers, it's "primarily optimized for AI edge compute in Optimus and Robotaxi." Musk then shared that despite the advancements, there was room for improvement. He said that a single AI6 chip could match a dual SoC AI5 within "the same half reticle and same process node." Huge Admirer Of Jensen Huang In the same thread, Musk also shared that he was a "huge admirer" of both Nvidia and Jensen Huang. He also hailed Nvidia's current status as the leading company by market capitalization in the world. "That market cap is well-deserved," he said, adding that both SpaceX and Tesla "expect to continue ordering Nvidia chips at scale." Tesla's Terafab, Nvidia's GTC 2026 Tesla has been ramping up its AI chip efforts, with Musk earlier announcing that the company's Terafab AI chip project was scheduled to kick off operations soon. The project would focus on producing the automaker's AI5 chip, a crucial element of Tesla's self-driving efforts. Doubts Remain About Tesla FSD Musk, on the other hand, has claimed that the internal logs of the vehicle showcased that Tesla's Autopilot was disengaged four seconds before the crash, sharing that the driver was in control of the vehicle instead. According to Benzinga Edge Rankings, Tesla scores well on the Momentum metric and also offers a favorable price trend in the Long term. Price Action: TSLA declined 1.63% to $392.78 at market close on Wednesday, but gained 0.11% to $393.22 during overnight trading. Check out more of Benzinga's Future Of Mobility coverage by following this link. Photo courtesy: Frederic Legrand - COMEO from Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.