Musk Claims New AI Chip Could Outperform Nvidia at Fraction of Cost

Elon Musk said his upcoming AI chip could outperform Nvidia’s products while costing a fraction of the price.

By Emma Clarke Published:

Elon Musk said he is developing a new AI chip that could be two to three times more powerful than Nvidia’s offerings while costing only about 10% as much. Musk stated that he has the chip’s architecture fully mapped out and is pursuing an aggressive development timeline as demand for artificial intelligence computing infrastructure continues accelerating.

According to Musk, the project also includes plans to build a dedicated manufacturing facility after expressing frustration with traditional semiconductor construction timelines. He argued that the rapid pace of AI development requires significantly faster deployment of advanced chip production capacity.

Musk also highlighted Tesla’s autonomous driving program, saying its Autopilot system has accumulated more than 10 billion miles of driving data and currently performs at roughly four times the safety level of a human driver. He added that the new chip could further improve autonomous driving performance in future systems.

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