Tesla Advances AI Chip Development with AI5 and AI6, Samsung Secures Manufacturing Deal
Tesla is nearing completion of its AI5 chip design and has initiated early planning for AI6, maintaining an aggressive annual release cadence. CEO Elon Musk confirmed the progress via social media, emphasizing Tesla's longstanding leadership in AI hardware development. The company has already deployed millions of AI4 chips across its vehicle fleet and data centers.
Samsung Electronics will manufacture the next-generation chips at its new Texas facility under a $16.5 billion agreement signed in July. Despite these technological advancements, Tesla's stock declined 1.05% to $391.09 on Friday, extending its year-to-date losses beyond 3%.
Investors continue pricing Tesla at 180 times its 2026 earnings estimates, reflecting sky-high expectations for its AI and autonomous driving capabilities. The market appears willing to overlook short-term volatility for what Musk calls "real-world AI" dominance through custom silicon.
