Elon Musk Reveals Where He Is Allocating Most Of His Time At Tesla: ‘AI5 Will Be Good, AI6 Will Be Great’

• These chips serve as the brain of Tesla cars, processing data from the car's sensors to make real-time autonomous decisions.
• New Tesla cars are currently on the AI4, or Hardware 4, version of the company’s AI chips, while the EV giant is developing AI5 and AI6 chips with better processing capabilities.
• During Tesla’s third-quarter earnings call, Musk revealed that the AI5 chip will offer 40 times the performance of AI4, with up to nine times the memory capacity and three times the efficiency.

Tesla Inc. (TSLA) CEO Elon Musk on Thursday revealed that he is dedicating most of his time at the EV giant to overseeing the development of new artificial intelligence chips for the company’s electric vehicles.

“AI5/AI6 engineering is my biggest time allocation at Tesla. AI5 will be good, AI6 will be great,” Musk said in a post on X.

Tesla shares were down 1% in Thursday’s pre-market trade. Retail sentiment on Stocktwits around the company trended in the ‘bullish’ territory at the time of writing.

What Are These Chips?

Tesla’s AI chips are the company’s custom-designed silicon that powers its Full Self-Driving (FSD) technology. These chips serve as the brain of Tesla cars, processing data from the car's sensors to make real-time autonomous decisions.

New Tesla cars are currently on the AI4, or Hardware 4, version of the company’s AI chips, while the EV giant is developing AI5 and AI6 chips with better processing capabilities.

“The Tesla AI5, AI6, and subsequent chips will be excellent for inference and at least pretty good for training. All effort is focused on that,” Musk said in a post on X in August.

During Tesla’s third-quarter earnings call, Musk revealed that the AI5 chip will offer 40 times the performance of AI4, with up to nine times the memory capacity and three times the efficiency.

“I’ve poured so much life energy into this chip personally, and I’m confident this is going to be a winner,” Musk said during the call.

Regulatory Scrutiny

Tesla’s FSD technology is currently under regulatory scrutiny, with the National Highway Traffic Safety Administration (NHTSA) seeking answers from the company after several reports of FSD-equipped vehicles being involved in traffic violations.

In a letter to the company earlier this month, the regulator noted that it had received 62 complaints and had identified four media reports, as well as 14 other reports flagged by Tesla itself, in instances of the FSD software malfunctioning.

Tesla has until Jan. 19, 2026, to respond to the regulator’s queries.

TSLA stock is up 12% year-to-date and 13% over the past 12 months.

Also See: Ray Dalio Reveals He Has Been Using AI For Decision Making For 35-40 Years, Says It’s A Big Part Of What Made Bridgewater Successful

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