November 25, 2025 – Yesterday, on November 24, tech media outlet Wccftech published a blog post reporting that Elon Musk, via his X platform, made a bold claim. He stated that for Tesla to emerge victorious in the “real – world AI” race, its production volume of AI chips must surpass the combined output of Nvidia, AMD, and all other major tech giants.
In his tweet, Musk pointed out that many are unaware that Tesla has had a highly advanced AI chip and circuit board engineering team for years. This team has already designed and deployed millions of AI chips for Tesla’s vehicles and data centers. These chips form the cornerstone of Tesla’s ambition to become a leader in real – world AI.
Musk further revealed that Tesla is now entering an annual product iteration cycle. Approximately every 12 months, the company will introduce a new AI platform. What’s even more eye – catching is his plan to scale up the production of AI chips to an unprecedented level, aiming to out – produce any other manufacturer.
Previously, Musk had expressed his hope of producing as many as 200 billion AI chips annually, driven by the widespread adoption of Tesla’s Full Self – Driving (FSD) fleet. Although this figure may seem far – fetched or even impossible, it reflects Tesla’s preparations to meet the enormous semiconductor demand for its upcoming new businesses, such as the Optimus robot and the Cybercab autonomous taxi.
To tackle the core bottleneck of chip supply, Musk proposed an optimistic plan to build “TeraFab” – level wafer fabs to meet Tesla’s estimated massive semiconductor requirements. At the same time, Tesla is also actively pursuing a diversified semiconductor procurement strategy.
The company has already integrated TSMC and Samsung to produce its AI5 and next – generation AI6 chips. It also plans to include Intel Foundry in its supply chain. However, Musk still believes that these top – tier chip manufacturers are far from being able to meet his demands. Therefore, he considers the plan to build its own wafer fabs to be logical and necessary.
The media outlet believes that although Musk’s plans are grand, establishing a complete chip supply chain is extremely complex. For Tesla, which has relatively little experience in semiconductor manufacturing, this is undoubtedly a daunting task.
