The Most Important AI Chip for the Next 20 Years: Why Inference Silicon Wins

According to Tesla, one AI 5 chip lands roughly in the range of an Nvidia H100 for the specific inference work Tesla cares about. Not only that, they generated almost 50 billion in cash flow in one quarter and grew their revenue 85% year-over-year. Elon also claimed roughly 10 times the performance per dollar and about three times the performance per watt versus AI 4. And a single AI 5 chip has around five times the useful compute of two of the old AI 5 chips combined. The next chip, AI 6, comes sometime in 2027 and roughly doubles the power on Samsung's newer process. And after that, AI 6.5, made by TSMC in Arizona, makes that three generations of their own custom chips already lined up with Tesla aiming for a fresh one every 9 to 12 months. Elon literally said, quote, "We're not about to replace Nvidia." For training their biggest model, Tesla and SpaceX AI are still major Nvidia customers.

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