Intel and Tesla Might Join Forces on AI Chips
Tesla’s CEO, Elon Musk, recently hinted at a potential collaboration with Intel during the company’s annual shareholder meeting. Musk shared that Tesla may need to build a ‘gigantic chip fab’ to meet the growing demand for AI chips powering its autonomous driving and robotics technologies. While no official deal has been signed, Musk stated, ‘It’s probably worth having discussions with Intel.’
Intel Stocks See a Rise
Following Musk’s comments, Intel’s stock rose by 4% during after-hours trading. Investors are optimistic as Intel looks to expand its foundry services to compete with Nvidia and AMD in the rapidly growing AI hardware sector. A partnership with Tesla could attract more external customers for Intel’s cutting-edge manufacturing technology.
Challenges in AI Chip Manufacturing
Tesla has been designing its fifth-generation AI chip, a key component for its Full Self-Driving (FSD) and autonomous driving systems. Currently, Tesla works with TSMC and Samsung; however, Musk noted these suppliers would not have the capacity to meet Tesla’s future needs. According to Musk, a new production facility would need to handle at least 100,000 wafer starts per month.
The company aims to produce limited quantities of its AI5 chips by 2026, with full-scale production starting in 2027. These chips are expected to be more power-efficient and cost-effective, using one-third the power of Nvidia’s Blackwell chips but only 10% of their manufacturing cost.
The Future of Tesla AI Chips
Looking ahead, Musk mentioned plans for a sixth-generation AI chip, the AI6, which would utilize the same facilities as the AI5 and deliver double the performance. Production for the AI6 is tentatively scheduled to launch by mid-2028. This ambitious roadmap underscores Tesla’s broader strive to transform into a global leader in AI and robotics.
How Intel Stands to Benefit
Partnering with Tesla not only opens new revenue streams for Intel but also positions the company to regain its footing in the competitive AI market, which has long been dominated by Nvidia and AMD. With backing from the U.S. government, Intel has revitalized its foundry services to secure industrial relevance.
Elevate Your Productivity with AI
Leverage the power of AI for your professional goals with cutting-edge solutions like the Intel NUC family. These compact yet powerful PCs are perfect for workflows requiring high-speed data processing, ideal for creators and businesses alike.
