Tesla Advances AI Chip Development Amid Stock Volatility
Tesla is nearing completion of its AI5 chip design and has initiated preliminary work on the AI6 iteration, according to CEO Elon Musk. The company aims to release a new chip design annually, with AI5 approaching tape-out and AI6 in the planning phase. Samsung Electronics secured a $16.5 billion contract in July to manufacture these chips, including production at a new Texas facility for the AI6 model.
Despite these technological strides, Tesla's stock exhibited notable volatility last week. Shares initially surged 4% to $428.94 before retreating to close at $395.04, underperforming a modestly rising tech sector. Friday's session saw a further 1.05% decline to $391.09.
Musk maintains ambitious production targets, asserting Tesla's intention to outpace all competitors in AI chip manufacturing. The company's current vehicular chip iteration remains AI4, with the next-generation processors destined for both automotive and data center applications.