<div id="readability-page-1"><div><div>On Sunday, Elon Musk doubled down on Tesla Inc.'s TSLA in-house chip strategy, touting the upcoming AI5 as the most powerful and efficient inference chip for certain model sizes while promising that its successor, AI6, will push performance even further.<h2>Musk Calls AI5 An ‘Epic Chip'</h2>Musk took to X, formerly Twitter, and said that Tesla's AI5 chip could become &#34;the best inference chip of any kind for models below ~250B params.&#34; He said the chip would offer &#34;by far lowest cost silicon and best performance/Watt.&#34;&#34;AI6 will take that much further,&#34; he added.His comments came after he announced having a &#34;great design review&#34; with the Tesla AI5 chip design team earlier in the day. At the time, he also said that Tesla had consolidated development from two architectures to one.Also Read: Elon Musk Returns To Intense Work Schedule: ‘Back To Working 7 Days a Week and Sleeping in the Office’<h2>Samsung, TSMC And Tesla's Foundry Strategy</h2>Tesla's silicon ambitions are supported by a $16.5 billion multiyear partnership with Samsung Electronics SSNLF to manufacture the AI6 chip domestically.The deal, announced in July, positions Samsung to build Tesla's most advanced chips while Taiwan Semiconductor Manufacturing Co. TSM produces the AI5.Analysts have said Tesla's dual-partner approach provides valuable foundry experience, potentially giving the automaker an edge over rivals that remain dependent on a single supplier.<h2>Analysts See $1 Trillion Potential In Tesla AI</h2>The bold chip comments come as analysts continue to view Tesla's AI business as a multi-trillion-dollar opportunity. Wedbush Securities analyst Dan Ives previously estimated that Tesla's AI and autonomous driving unit alone could be worth $1 trillion.Cathie Wood of ARK Invest has also echoed that view, describing Tesla as &#34;the largest AI project on earth&#34; and projecting that autonomous taxi networks could generate $8 trillion to $10 trillion in global revenue over the next decade.<h2>Industry Trends And Competition</h2>Tesla's pivot to custom silicon mirrors moves by OpenAI and other tech players developing proprietary chips to reduce reliance on Nvidia Corp. NVDA.Price Action: Tesla shares have fallen 7.50% year-to-date but are still up 62.22% over the past 12 months, according to Benzinga Pro.Benzinga's Edge Stock Rankings show that TSLA maintains an upward trajectory across short, medium and long-term horizons. The stock carries a strong momentum score, though its value rating remains comparatively weak. More detailed performance insights can be found here.<ul> <li>Sundar Pichai Next? Trump’s Next Big Tech Payday Could Be From YouTube After Settling Lawsuits With Meta And X: ‘Productive Discussions’ Underway</li> </ul>Photo Courtesy: Photo Agency on Shutterstock.com</div></div></div>

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Elon Musk announced that Tesla's upcoming AI5 chip will be the most powerful and efficient inference chip for models under 250 billion parameters, with the AI6 set to enhance performance further. Supported by a $16.5 billion partnership with Samsung, Tesla aims to gain an edge in chip manufacturing. Analysts see Tesla's AI business as a potential multi-trillion-dollar opportunity, with estimates suggesting its autonomous driving unit could be worth $1 trillion. Despite a 7.5% drop in shares this year, Tesla's stock remains up 62.22% over the past year.

- Elon Musk emphasized Tesla's in-house chip strategy, highlighting the AI5 as a leading inference chip for models under 250 billion parameters, with the AI6 expected to enhance performance further.  
- Tesla's partnership with Samsung, worth $16.5 billion, aims to manufacture the AI6 domestically, while TSMC will produce the AI5, providing Tesla with a competitive edge in chip development.  
- Analysts project Tesla's AI business could be worth up to $1 trillion, with potential revenue from autonomous taxi networks estimated between $8 trillion and $10 trillion over the next decade.

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Elon Musk Says Tesla's AI5 Chip Will Crush Competition On Performance-Per-Watt, Says AI6 Will Take That 'Much Further'