Why build your own chips (AI5, Terafab)?

“Solving AI5 was existential to Tesla, which is why I had to focus both the teams on that chip and I’ve personally spent every Saturday for several months working on it. This will be a very capable chip. Roughly Hopper class as single SoC and Blackwell as dual, but it costs peanuts and uses much less power. Now that AI5 is looking good, we have some headroom to work on Dojo3 too.”

— Elon Musk, 19 January 2026 · Post on X ↗