Tesla and SpaceX to Continue Large-Scale Nvidia Chip Orders
SpaceX and Tesla will continue purchasing Nvidia chips at scale, according to CEO Elon Musk. His comments highlight ongoing strong demand for AI hardware as both companies expand their artificial intelligence capabilities.
Musk also expressed strong admiration for Nvidia and its CEO Jensen Huang, reinforcing the importance of the chipmaker in the rapidly growing AI ecosystem.
Tesla Advances Development of In-House AI5 Chip
At the same time, Tesla is making progress on its own next-generation AI processor, known as AI5. Musk stated that the chip is expected to deliver performance well beyond expectations.
The AI5 chip is being specifically designed to support Tesla’s Optimus humanoid robot and its robotaxi platform, both of which are central to the company’s long-term growth strategy.
Tesla’s Terafab project, focused on AI chip manufacturing, is scheduled to launch on March 21. While the AI5 design is reportedly nearing completion, large-scale production may not begin until around mid-2027.
Nvidia Remains Core to Musk’s AI Ecosystem
Despite developing its own chips, Tesla continues to rely heavily on Nvidia hardware for its AI operations. Musk’s AI startup, xAI—now integrated into SpaceX—used Nvidia chips to train its Grok AI model.
The company’s Colossus computing facility in Memphis is powered primarily by Nvidia’s advanced chip architectures, including its H and Blackwell series.
Tesla also previously relied on Nvidia after discontinuing its Dojo supercomputing project, further underscoring Nvidia’s dominance in AI infrastructure.
AI and Robotics Key to Tesla’s Future Growth
Tesla is accelerating efforts to build its own AI chips, with plans for both AI5 and future AI6 processors. In 2025, the company signed a $16.5 billion agreement with Samsung to support chip manufacturing.
Musk has repeatedly emphasized that artificial intelligence and robotics will be major growth drivers for Tesla, especially as the company faces declining electric vehicle sales over the past two years.
SpaceX Expands AI Ambitions
SpaceX is also exploring new AI-driven initiatives, including plans to develop data centers in space. The company is reportedly preparing for a major public offering later this year, which could further support its expansion into advanced technologies.
