Elon Musk said he is making chips ‘2-3 times better’ than Nvidia

The information was mentioned by the billionaire in a conversation with Ron Baron, founder of Baron Capital, broadcast on June 9. He said it’s conceivable that Tesla’s entire physical chip design and next-generation processor would beat Nvidia in inference “by a huge margin.”

Musk mentioned AI5 – the inference chip that Tesla completed the design in April. The American billionaire sees this chip as a key factor in expanding the self-driving capabilities of Tesla cars, asserting that the system is currently “four times safer than human drivers”, and “will be improved to 10 times in the future”.

Musk also denied TSMC’s claim that building a new chip factory would take five years. “For me, 5 years is an endless time,” he emphasized.

Production will be carried out at Terafab in Texas, a complex expected to create advanced AI chip models for robotics and space data centers, with a goal of reaching a computing capacity of one terawatt per year, double the half-terawatt level – the highest capacity a factory in the US currently has. Musk even set the ambition that this place could produce one million wafers per month.

Intel’s first quarter 2026 results report in April also showed why Musk wanted them to participate in the joint venture. Intel Foundry manufacturing grew to $5.42 billion, up 16% year-over-year, while Intel 18A technology is now mass produced in Arizona and Oregon. Musk said Terafab will use Intel’s 14A process.

Meanwhile, Nvidia still dominates the AI ​​chip segment. The Vera Rubin platform, which succeeds Blackwell, is claimed to reduce the cost of inference tokens by a factor of 10. According to AOLthis is a difficult gap to bridge, especially for a party that has not yet entered commercial operations like Terafab.

On social networks, most are skeptical about Musk’s statement. He often sets great ambitions with bold promises, some of which have come true, but many goals have not been achieved or are constantly delayed.

One of Musk’s successful commitments is to push electric vehicles to become a mass product. When Tesla launched the Roadster in 2008, the electric vehicle market was almost non-existent, but now the company has become one of the largest electric vehicle companies in the world, contributing to the transformation of the entire auto industry. In the space sector, Musk wants to drastically reduce rocket launch costs through reuse – an idea that was once skeptical due to technical complexity, but SpaceX now regularly reuses Falcon 9 and Falcon Heavy boosters.

However, in 2016, he announced that Tesla cars could be fully self-driving within a few years. After 10 years, this technology still requires driver supervision. He once said he would send people to Mars in the 2020s, but is facing many technical, safety and regulatory challenges.

Theo BloombergLooking back at history, most of Musk’s statements lie between the “boundary” of vision and optimism: many times failing to meet the set timeline, but also realizing goals that were once considered impossible, causing each of his new commitments to always attract attention from investors, the technology industry and the public.