Musk: Tesla AI6 chip will be world's best edge-compute chip
Elon Musk said Tesla’s next‑generation in‑house AI6 chip will become the “world’s best edge‑computing chip.”
🎙️ Elon Musk · earnings call, July 22
“I’m very excited about the design of Tesla’s AI6 chip. I think it will be the best edge‑computing chip in the world. If anyone can make a better chip, I’d be happy to shake his hand.”
Terafab · 1M wafers/month · site coming soon
Tesla has been ramping up self‑developed semiconductor efforts, including the ambitious Terafab wafer fab project, targeting 1 million wafers per month. Musk said the site selection for Terafab will be announced soon.
Beyond Terafab, Tesla is investing in other AI initiatives, including the Optimus robot and the Cybercab autonomous taxi.
🔗 Supply chain · TSMC, Samsung, Micron
Musk said that TSMC and Samsung’s US fabs will be critical links in the Optimus humanoid robot supply chain.
“Our partners have been terrific, and I want to thank them for their support, investment, and hard work,” he said. “Despite the recent memory‑chip price increases, Tesla was able to secure memory chips from Micron on reasonable terms.”
📊 Capex doubles · FCF turns negative
Thanks to heavy AI investment, Tesla’s capital expenditure more than doubled to $5.8 billion in the three months ended June 30. Its free cash flow turned negative for the first time in four quarters.
📈 Q2 2026 results (Apr–Jun)
- Revenue: $28.2 billion — up 26% YoY
- Net income: $1.2 billion — down 17% YoY
CFO Vaibhav Taneja said capex will “grow further” in the second half of 2026, with full‑year capex expected to exceed $25 billion.
🔮 Taneja · capex outlook
“Over the next two to three years, capex will grow as we scale the robotaxi fleet, increase Optimus production capacity, invest in semiconductor fabs, build solar manufacturing capacity, and expand AI compute infrastructure.”