Elon Musk considers the creation of the AI chip AI5 to be the most important project for the future of Tesla. He noted that he dedicates Saturdays and Tuesdays to working on this chip. AI5 is expected to provide a 50-fold increase in performance compared to its predecessor: computing power will increase tenfold, memory ninefold, and the efficiency of quantization and softmax operations fivefold. These improvements are critically important for the functioning of autonomous vehicles and robots.
The production of AI5 is scheduled for 2027, and the next version, AI6, could be released as early as 2028 if everything goes according to plan. Musk added that Tesla does not intend to sell these chips to other companies; they are intended solely for internal use.
"These chips are needed exclusively by us," he emphasized, noting that the company is confident in the chosen architecture.
Musk also pointed out that the main limitation for Tesla's growth in the coming years will not be the production of cars, but the availability of chips. The production of autonomous robotaxis and Optimus robots depends on the availability of specialized AI processors, and without them, scaling the business becomes impossible. Currently, Tesla has guaranteed supplies for three years, but after that, the situation becomes uncertain.
In this regard, Musk once again raised the issue of creating its own semiconductor plant, TeraFab, which will ensure vertical integration in the production of logic chips, memory, and packaging. He warned that without in-house production, Tesla risks facing problems in global supply chains, especially against the backdrop of geopolitical tensions surrounding Taiwan.
Nevertheless, CFO Vaibhav Taneja noted that TeraFab is currently not included in the company's investment plans.
Despite this, Tesla continues to invest in AI infrastructure. In the first half of 2026, the company plans to more than double its computing power for AI training at its Texas plant, which is equivalent to the capabilities of Nvidia H100 GPUs. For this purpose, a new supercomputer called Cortex 2 is being built at Gigafactory. Tesla also announced an investment of $2 billion in the startup xAI, owned by Musk.
Part of the conference was dedicated to robotics and global competition. Musk stated that the main threat to Tesla in the field of humanoid robots will come from China. He emphasized that this country has strong AI developments and an excellent ability to scale production, as already demonstrated in the electric vehicle market.
Musk is confident that the Optimus robot will surpass Chinese counterparts in terms of "real intelligence" and mechanical dexterity, especially in the design of the hand—the most complex part of the robot.
At the same conference, Musk announced that in the next quarter, Tesla will cease production of the Model S and Model X models. The freed-up capacity at the Fremont plant will be reconfigured for the assembly of humanoid robots Optimus. For the quarter, the company reported revenue of $24.9 billion and adjusted earnings per share of $0.50. These results exceeded some market expectations, despite a decrease in revenue compared to the previous year.
