Tesla taped out AI5 chip, Musk says - nearly 2 years behind schedule

Key Points:

• Tesla has completed the tape-out of its next-generation AI5 self-driving chip, marking a significant step as the design is sent to fabrication, though volume production is still over a year away.
• The AI5 chip, promised nearly two years ago, is expected to be up to 10 times more powerful than the current AI4 chip, but delays have pushed its mass production to mid-2027, impacting the launch of Tesla's Cybercab.
• Tesla is using TSMC to produce AI5, while the follow-up AI6 chip, tied to Samsung’s 2nm process, faces additional delays with mass production not expected before late 2027.
• The Cybercab, slated for Q2 2026 production, will launch with existing AI4 hardware due to AI5's delayed availability, and Tesla requires several hundred thousand AI5 units before switching production lines.
• Despite progress in chip development, Tesla faces criticism for repeatedly shifting focus to new hardware generations without fully delivering the promised self-driving capabilities on existing platforms, leaving many customers without the expected features.