Tesla Inc. CEO Elon Musk has announced that the company’s next-generation AI5 chips will not be available in sufficient quantities until mid-2027. This delay will impact Tesla’s transition to these new chips, which are expected to significantly upgrade the intelligence capabilities in Tesla cars.
Focus on AI5 Development
Musk has confirmed that his current focus is on the AI5 chip, with regular Saturday design reviews. In a recent post, he stated that “AI5 will not be available in sufficient volume to switch over Tesla production lines until mid 2027, as we need several hundred thousand completed AI5 boards line side.”
AI6 Chip Development Already Underway
In addition to the AI5 chip, Musk has also announced that work on the AI6 chip has begun. Tesla will have samples and a small number of units of the AI6 chip in 2026, with high-volume production expected in 2027. The AI6 chip is expected to achieve roughly 2X performance compared to the AI5 chip, with a target release date of mid 2028.
Implications of the Delay
The delay in AI5 chip production is significant for Tesla, particularly given Musk’s previous efforts to expedite chip production timelines. Musk has been pressuring partners like Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co. to accelerate their production processes. The collaboration between Tesla and these partners was intended to mitigate risks and ensure a steady supply of chips, but the recent delay indicates ongoing challenges in meeting Tesla’s timelines.
Industry Reaction
Cathie Wood of ARK Invest has highlighted the AI5 chip’s potential as a transformative technology for Tesla. Wood shared a post from business advisor Brian Roemmele, stating that “If @BrianRoemmele thinks #Tesla’s A15 chip will be a big deal, then it will be a big deal.”
Key Takeaways
- Tesla AI5 chip production delayed until mid-2027
- AI6 chip development already underway, with expected release in mid 2028
- Delay will impact Tesla’s transition to new chips, which are expected to significantly upgrade intelligence capabilities
- Musk’s previous efforts to expedite chip production timelines have been unsuccessful so far
What’s Next for Tesla?
The delay in AI5 chip production is a significant development for Tesla, and it remains to be seen how the company will address the challenges in meeting its production timelines. With the AI6 chip already in development, Tesla is pushing forward with its plans to upgrade its intelligence capabilities and stay ahead in the EV market.