Tesla (TSLA) is again caught in the spotlight after CEO Elon Musk told shareholders that Tesla’s wildly ambitious AI agenda may soon include making its own chips. At the company’s annual meeting, Musk said Tesla is designing a fifth-generation “AI5” processor and likely needs to build “a gigantic chip fab” to meet demand.
He even floated discussing with chipmaker Intel (INTC) about partnering on the project. Musk bragged the Tesla-designed chips would be extremely power-efficient and cheap, about a third of Nvidia’s (NVDA) power draw at roughly 10% of the cost, and quipped that he’s got “chips on the brain” these days.
