Elon Musk has made a bold announcement that's turning heads in both the tech and automotive worlds.
As International Business Times reported, Tesla plans to produce more powerful AI chips than all other manufacturers combined.
The Tesla CEO revealed on X that the company is already shipping its fourth-generation AI processor, AI4, while finalizing AI5 and beginning work on AI6.
Looking ahead, Musk said that the technology for the eventual AI8 "will be out of this world."
Musk emphasized that Tesla's goal is to release a new chip architecture every year, positioning the company not just as a leading electric vehicle manufacturer, but also as a major player in AI and robotics.
AI chips are at the heart of Tesla's self-driving technology and real-world AI capabilities, and producing chips in-house at a large scale may allow Tesla to improve vehicle performance, reduce supply-chain delays, and innovate faster.
For drivers, that could translate into smarter, safer, and more responsive vehicles. Plus, as Tesla expands its EV offerings, these advancements can also support the environment by encouraging broader adoption of electric vehicles, helping reduce automotive pollution and reliance on dirty fuels.
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Tesla's announcement has already excited investors, with shares jumping over 6%. It's good news for the company, which has had its fair share of problems in 2025, not least because of Musk's involvement in U.S. politics.
But beyond the stock market, the real impact may be the coming together of better AI, safer vehicles, and cleaner transportation, all benefiting people and the planet as Tesla continues to push the boundaries of electric mobility.
Response to Musk's claims has been mixed. Some remain skeptical, with one commenter on Reddit pointing out, "Tesla doesn't even have a chip foundry. This is a complete fabrication."
Others are more supportive, with another commenter stating, "Elon is a genius and a visionary and a disruptor. If anyone can do it, it's him!"
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