Elon Musk, the visionary behind SpaceX and Tesla, recently revealed ambitious plans concerning artificial intelligence, emphasizing continued collaboration with Nvidia while developing in-house chip capabilities. Both SpaceX AI and Tesla will keep ordering Nvidia chips in large quantities, signaling ongoing reliance on the chipmaker’s technology.
However, Tesla is also making significant strides in its own chip design. The company is developing its fifth-generation AI chip, a crucial component for its autonomous driving systems. This new chip will power the Full Self-Driving software, a key focus for Tesla.
Musk clarified on X that this “AI5” chip serves a dual purpose. While it can be used for training in data centers, its main optimization lies in “AI edge compute.” This means the chip will primarily power devices like the Optimus humanoid robot and the upcoming Robotaxi, bringing advanced AI capabilities directly to these applications.
Looking ahead, Tesla owners can expect a significant update to the Full Self-Driving (Supervised) software within a few weeks, indicating a broad rollout of enhanced autonomous features. This update is a testament to Tesla’s continuous efforts in improving its AI-driven driving technology.
In a related development, Musk announced that Tesla’s “Terafab” project, dedicated to manufacturing artificial intelligence chips, would launch shortly. This internal manufacturing capability will further solidify Tesla’s control over its AI hardware supply chain.
Meanwhile, SpaceX recently acquired xAI in an all-stock deal. This acquisition comes ahead of a potential initial public offering for SpaceX later this year. Musk’s recent statements mark the first time he has referred to the combined entity as “SpaceX AI,” suggesting a unified and expanded focus on artificial intelligence across his ventures.
These announcements highlight Musk’s strategic push to integrate advanced AI into all his major companies, from powering autonomous vehicles and humanoid robots to potentially influencing space exploration through SpaceX AI. His vision points towards a future where sophisticated AI is at the core of innovation across diverse industries.











