On November 7, 2025, during Tesla's annual shareholder meeting, CEO Elon Musk announced that Tesla may find it necessary to build a "colossal chip plant" dedicated to producing artificial intelligence chips. This move is aimed at fulfilling the growing demands of its autonomous driving and robotics sectors. The proposed plant is projected to manufacture a minimum of 100,000 wafers each month, a scale that would far outstrip the production capacity of Tesla's current Gigafactories. Musk also disclosed that Tesla is in the process of designing its fifth-generation AI chip, dubbed AI5. He expects samples of this advanced chip to be ready by 2026, with mass production scheduled to commence in 2027. The AI5 chip will leverage cutting-edge 3nm process technology, boasting a computing power ranging from 2000 to 2500 TOPS (Tera Operations Per Second). This represents a fivefold increase in performance compared to its predecessor. Furthermore, Musk hinted at the possibility of Tesla partnering with Intel to bolster its chip production capabilities and meet its escalating needs.
