During Tesla's yearly shareholder gathering, Musk disclosed that Tesla is contemplating building a 'colossal chip plant' to cater to the significant need for high - performance chips, a demand propelled by the advancements in artificial intelligence and robotics technology. Shareholders gave the green light to Musk's $1 trillion compensation plan for the upcoming decade, throwing their weight behind his strategic outlook to turn Tesla into a dominant force in the AI and robotics domains.

At present, Tesla is in the process of devising its fifth - generation AI chip, AI5, and intends to assign its production to TSMC and Samsung. It's anticipated that a limited - scale production will kick off next year, with full - fledged mass production slated for 2027. In July of this year, Tesla inked a semiconductor foundry deal worth roughly RMB 107.6 billion with Samsung for the manufacturing of the 'AI6' chip. This chip will find applications in next - generation full self - driving systems, among other uses.

Musk emphasized that even when suppliers are operating at full throttle, they still can't keep up with the demand. This makes it imperative to construct a massive wafer fabrication facility that can initially churn out at least 100,000 wafers per month and eventually scale up to 1 million wafers. He also brought up the possibility that Tesla could think about teaming up with Intel.