Tesla CEO Elon Musk announced that the electric vehicle manufacturer may complete the design process for its next-generation AI6 chips in December, a milestone known as "tape out" in the semiconductor industry.

The tape out process represents the final stage of chip design before manufacturing begins, indicating Tesla is moving closer to producing its own advanced artificial intelligence processors. These chips are expected to power Tesla's autonomous driving systems and other AI-powered features in its vehicles.

Despite developing its own chip technology, Musk indicated that both Tesla and SpaceX will continue purchasing Nvidia processors at scale. This suggests Tesla's internal chip development is intended to complement rather than completely replace its reliance on external suppliers like Nvidia.

Tesla has been investing heavily in custom silicon to reduce dependence on third-party chip manufacturers and optimize performance for its specific AI workloads. The company's previous generations of AI chips have been designed to handle the complex computational requirements of its Full Self-Driving technology.

The announcement comes as Tesla continues expanding its AI capabilities across multiple fronts, including autonomous driving, robotics, and energy management systems. The development of proprietary chips represents a significant investment in Tesla's long-term technological independence and competitive positioning in the AI-driven automotive market.