Tesla Developing Their Own AI Chips For Self-Driving Cars

Elon Musk has come out with another surprising news regarding Tesla Motors. In the earnings call which was held today, Elon Musk announced that Tesla will soon be bringing out its own AI chips in their automated cars. Elon Musk said that “We are building our semi-stealth mode from the last 2 to 3 years and are near to the launch of it”.

The new AI chips are being built for the Tesla’s own computer which is attached to their automated cars. It is known as ‘Hardware 3’ which is currently operating on Nvidia GPUs. Tesla will be bringing out the third update for their Model 3, Model X and Model S Autopilot systems which will include the new chips.

Tesla’s Own AI Chips

Tesla’s Director Pete Bannon explained the reason for Tesla switching from Nvidia’s Chips to making their own chips. The new AI Chips are currently on-road tests to make them totally verified and functioning. With the new AI chips, the processor will see a rise of nearly 1,800 frames per second from 200 to 2000.

The main reason for Tesla manufacturing their own chip is to meet their own needs for making up the efficiency. He said that “We have our neural network planned. Hence we know how it is going to look in the future with the newer tech and updates. Hence in the Hardware 3, we want to bring out the upgrade which will have our own manufactured chips. It will start rolling out by next year”.

Elon Musk said that “The new neural network will be able to make calculations on itself and become like an emulation mode. The GPU and CPUs will collaborate with each other and do calculations for providing better results. The new powerful AI chips will have a boost in frames per second processing. It will have full redundancy and failover”.


The manufacturing of their own chips will help the company develop at the pace they want. For bringing in minor changes in the hardware, the company can do it themselves at a faster rate. The major concern with developing such AI chips is the pricing. On that, Elon Musk said that it is not going to cost the company much and that the price is similar to the existing chips. When Musk was asked about the implementation of the new chips in the existing hardware, he said that it is quite simple. The computers are compatible hence we can easily switch them over with the new chips in the next upgrade. Telsa had previously said that they will be bringing in self-driving cars by 2019. With the manufacturing of the AI chips, the reality might not be far away.

With all the buzz around Tesla, they might not be going along the path they want to. Recently, it was revealed that Tesla suffered a loss of $718 million due to their Model 3 cars. Elon Musk has promised the stakeholders that they will recover soon from the loss. But if this continues, Tesla might be facing a lot of trouble later on.

Disclaimer: This information is covered based on the latest research and development available. However, it may not fully reflect all current aspects of the subject matter.

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