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AI5 Chip Breakthrough: Tesla Announces Reboot of Dojo 3 Supercomputer Project to Secure Autonomous Driving Compute Independence

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Tesla CEO Elon Musk recently announced that with the design of the AI5 chip now complete, Tesla (TSLA) will reboot the development of its Dojo 3 supercomputer project. The Dojo project aims to provide massive computing power for autonomous driving systems and AI models through self-developed chips and systems, reducing reliance on external suppliers.

Analysts believe the AI5 chip will support more complex Full Self-Driving (FSD) algorithms. The progress of the chip’s mass production will directly influence the rollout speed of Tesla’s FSD features and could become a critical pillar for its robotics business.

Musk’s Announcement

On January 19, Musk posted on the social media platform X that Tesla will restart the development of the Dojo 3 supercomputer project following the completion of the AI5 chip design.

Simultaneously, he posted recruitment information seeking talent interested in “developing the world’s highest-volume chip,” requiring applicants to summarize key technical challenges they have solved in three bullet points.

In subsequent posts, Musk emphasized: “Solving the AI5 chip issue is critical for Tesla. Therefore, I had to have both teams focus on this chip’s development, and I have personally spent every Saturday on it for several months.”

Musk noted that AI5 will be an exceptionally powerful chip: a single SoC’s performance is roughly equivalent to Nvidia’s Hopper(NVDA) class, while a dual-chip configuration approaches Blackwell levels—but at a significantly lower cost and power consumption. “With AI5 progressing smoothly, we finally have some bandwidth to restart the R&D for Dojo 3,” he stated.

This marks a strategic reversal. In August 2025, reports suggested that Tesla had fully suspended the Dojo project, leading to the departure of project lead Peter Bannon. At the time, the move was interpreted as Tesla abandoning its self-developed autonomous driving chip plan.

Musk previously explained that it made little sense for Tesla to divide resources between two vastly different AI chip designs. He noted that Tesla’s AI5, AI6, and subsequent chips would excel in inference and perform well in training, and that all efforts would be concentrated there. He added that integrating multiple AI5/AI6 chips onto a single circuit board for supercomputer clusters could reduce networking complexity and costs by several orders of magnitude.

First mentioned in 2019, the Dojo project carries Tesla’s grand vision for AI. It is designed to optimize neural network models and process autonomous driving video data. Morgan Stanley previously estimated that a fully operational Dojo could potentially add billions of dollars to Tesla’s valuation.

A Decisive Battle for Autonomous Driving

Musk recently revealed that the AI5 chip for FSD is nearing design completion, while AI6 is in its early stages. Tesla aims to complete design cycles for AI7, AI8, and AI9 within a nine-month cadence.

According to previously disclosed data, the AI5 chip will deliver 2,000–2,500 TOPS of computing performance—roughly five times that of the current HW4 chip—enabling more sophisticated FSD algorithms.

Sampling and small-scale deployment of the AI5 chip are scheduled for 2026, with full mass production expected in 2027. As AI5 nears the finish line, Tesla has initiated early work on AI6, which is expected to launch in 2028. AI6 will likely continue Tesla’s foundry partnership with Samsung Electronics, utilizing a modular architecture deeply integrated with the Dojo supercomputer ecosystem to create synergy across vehicles, robots, and supercomputing.

Recent reports indicate that Samsung Electronics is accelerating preparations for AI5 production at its U.S. facilities, recruiting experienced engineers to stabilize yields and ensure a smooth manufacturing process for Tesla.

Shift to FSD Subscription Era

Alongside hardware updates, Tesla’s FSD strategy is undergoing a major shift. Musk recently announced that starting February 14, Tesla will discontinue the one-time purchase option for FSD in favor of a monthly subscription model.

This marks the end of a decade-long era of one-time buyouts (previously $8,000 in the U.S. and 64,000 RMB in China). Analysts point out that this “SaaS” (Software as a Service) approach aims to lower the barrier to entry, increase penetration, and generate recurring revenue.

Musk has hinted that the next version of FSD will achieve full autonomy, even admitting that Robotaxi driverless testing has already begun. Morgan Stanley views FSD 14.3 as a potential “Steam Engine Moment” for autonomous driving, which is shaping up to be a primary investment theme for Wall Street in 2026.

Musk Slams Apple-Google Partnership, Alleging “Unreasonable Concentration of Power”

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Elon Musk, the world’s wealthiest person, launched a scathing critique on Monday against the new partnership between Apple (AAPL) and Alphabet (GOOGL), claiming it grants the latter an “unreasonable concentration of power.”

Google and Apple announced a new multi-year cooperation agreement on Monday, though specific financial terms were not disclosed.

Under the agreement, Apple will utilize Google’s Gemini model to power a new version of Siri, set to launch later this year. This collaboration deepens the alliance between the two tech giants in the AI era and further solidifies Google’s position in its competition against OpenAI.

In a joint statement, the two companies said: “After a thorough evaluation, Apple determined that Google’s AI technology provides the most capable underlying support for Apple Foundation Models and is excited about the new innovative experiences this will unlock for Apple users.”

Musk responded on his social media platform X, stating: “Given that Google also controls Android and Chrome, this looks like an unreasonable concentration of power.”

Musk founded his own AI company, xAI, to compete with major industry players like OpenAI.

In contrast to Musk’s criticism, Dan Ives, an analyst at Wedbush Securities, believes the deal is a “positive win” for both Apple and Google. He noted that for Google, the partnership serves as a major validation of its status as a top-tier foundation model provider. For Apple, it represents a significant step in accelerating its AI strategy toward 2026 and beyond.

Apple had previously considered partnering with OpenAI or Anthropic to have ChatGPT or Claude power the new Siri but ultimately selected Google’s Gemini. Last November, Google launched its Gemini 3 model, which received widespread acclaim for its performance.

The latest agreement builds upon years of existing collaboration, as Google has long been the default search engine on Apple devices. This partnership not only drives massive traffic to Google but also generates tens of billions of dollars in annual revenue for Apple.

Apple currently has approximately 2.4 billion active iOS devices and 1.5 billion iPhones in use, representing one of the largest installed bases among consumer electronics companies.

Tesla’s Valuation Anchor: Cybercab Mass Production in April—How Will Robotaxi and FSD Deliver on the Hype?

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Tesla’s(TSLA) current high valuation relies heavily on the visionary potential of its Robotaxi and Full Self-Driving (FSD) technology. Based on the latest operational updates and product roadmaps, the core investment logic is summarized below:

Robotaxi Status: Competitive Pricing and Expanding Range, but Scale Remains Limited

More Affordable than Waymo According to DriveTesla and Robotracker, Tesla’s Robotaxi initially launched with a flat fare of $4.20 per trip, later adjusting to $6.90 as coverage expanded. The service has now largely transitioned to dynamic pricing, averaging approximately $1.50 per mile. In comparison, Waymo’s pricing in San Francisco and Phoenix averages around $2.50 per mile—rising above $3.00 during peak hours—giving Tesla a clear price advantage.

Steady Geographic Expansion While currently only operational in two core hubs—Austin, Texas, and the San Francisco Bay Area—Tesla’s coverage area already exceeds that of Waymo. By 2026, the company plans to expand to multiple states, with a confirmed list of cities including Miami, Las Vegas, Houston, and Dallas.

Key Bottlenecks Persist The primary challenge remains fleet size, which leads to prolonged wait times. As of December 2025, approximately 1,655 Robotaxis were registered in California, but only 132 were in active operation; Austin’s fleet stood at just 40 vehicles. Consequently, Robotaxi has yet to contribute significant revenue and remains in the early stages of commercial validation.

Robust Safety Performance The safety record has been stable since launch with no severe accidents reported. Of the 16 incidents reported to the NHTSA (National Highway Traffic Safety Administration) since May 2025, only two involved airbag deployment—both caused by other vehicles. Tesla’s vehicles sustained no structural damage in these cases, and the majority of incidents resulted in no injuries, indicating a high level of overall safety.

FSD: Rising Penetration and “Grok” Integration—China as the Critical Variable

While Robotaxi may not drive significant revenue in the short term, it serves as a powerful catalyst for FSD adoption:

Technical Iteration and Surging Subscription Rates FSD V14 utilizes a unified system compatible with both consumer vehicles and Robotaxis, with only minor functional differences (e.g., consumer cars retain Autopark, which is unnecessary for Robotaxis). V14 features more conservative driving logic and, following an architectural upgrade, may integrate a streamlined version of the Grok AI system, which is expected to further increase MPI (Miles Per Intervention).

The FSD subscription “take rate” has surged from single digits to between 13% and 19% as of September 2025. By the end of 2025, with Tesla’s cumulative production reaching approximately 9 million vehicles, the estimated number of FSD subscribers sits around 1 million. Since subscribers are concentrated in the U.S. (which accounts for roughly 50% of Tesla’s recent sales), the U.S. penetration rate likely exceeds 20%.

2026 Global Acceleration: Focus on the China Market Following the Grok integration and subsequent performance boosts, the market expects the launch of “unsupervised” Robotaxi operations and a driverless version of FSD. By 2026, commercialization is expected to move into Europe, Southeast Asia, and other regions.

As Tesla’s second-largest market, China remains a crucial growth lever. Currently, FSD is limited to a one-time purchase of 64,000 RMB (~$9,000) with a penetration rate under 5%. If full regulatory approval is granted and Tesla switches to a monthly subscription model, the lower entry barrier is expected to significantly drive adoption in the region.

Cybercab: Mass Production Slated for 2026 with a 2-Million Unit Target

Tesla has already begun testing the Cybercab production system. Elon Musk previously indicated that mass production is scheduled to begin in April 2026. Multiple Cybercab prototypes have been spotted during road tests in Austin. Notably, these test vehicles are equipped with temporary steering wheels and mirrors to satisfy current safety and regulatory requirements.

Tesla envisions the Cybercab as the “highest-volume vehicle in history,” targeting an annual capacity of 2 million units. However, given the realities of automotive manufacturing, achieving this goal in the short term remains a formidable challenge.

Summary: 2026—The Year of Scalability and Execution

Compared to the expectations set in early 2025, many of Tesla’s Robotaxi milestones have already been achieved: accident rates are low, and an unsupervised version is in testing. The core watchpoints for the future are twofold:

  1. Fleet Scaling: Current wait times of 30–40 minutes and the continued need for human supervision mean the service is not yet “fully commercialized.”
  2. Cybercab Production: The pace of the production ramp-up will directly determine whether Tesla’s valuation logic can be realized.