Tesla Develops AI5 Chip While Intel Partnership Boosts Production

Tesla CEO Elon Musk recently announced ambitious plans for the company to potentially build a "gigantic chip fab," possibly named a "Tesla terra fab," to address its escalating need for semiconductors. This massive factory would initially aim for 100,000 wafer starts per month, with a long-term goal of reaching 1 million, to support Tesla's extensive AI and robotics initiatives, including its Full Self-Driving software, Optimus humanoid robots, and the upcoming Cybercab, slated for production in April. Tesla is actively designing its fifth-generation AI chip, the AI5, which Musk claims will be more power-efficient and cost-effective than Nvidia's Blackwell chip. While Tesla currently relies on suppliers like TSMC and Samsung, it faces ongoing chip shortages, prompting the consideration of a partnership with Intel's manufacturing arm for this new venture. Musk shared these plans at the company's annual meeting on November 7, 2025, and during a third-quarter earnings call. Beyond Tesla's hardware ambitions, the AI landscape is seeing diverse developments. Generalist AI introduced GEN-, an embodied foundation model designed to teach robots physical skills by enabling them to think and act simultaneously, trained on 270,000 hours of real-world manipulation data. Samsung Electronics is banking on advanced AI features to drive sales of its upcoming Galaxy S26 series, targeting 36 million units in 2026 with a custom processor and a 200MP main camera sensor on the Ultra model. In the enterprise sector, Mple.ai launched an AI platform to enhance sales training through automated coaching, personalized practice, and real-time feedback, integrating with existing CRM systems. Maryland counties are adopting Dynatect's AI-powered observability platform to bolster IT security and operations, addressing staffing challenges and supporting cloud migration. Amazon is expanding its AI Studios, appointing Matt Newman as Head of Live-Action to empower creators with generative AI tools. Academic institutions are also making significant moves, with Ohio State University planning to hire 100 new AI expert faculty over the next five years to lead research and education across foundational, applied, and responsible AI. Meanwhile, the societal impact of AI chatbots, such as ChatGPT, presents a complex picture. Some individuals, like Blake from Ohio and Abbey from North Carolina, report forming deep, therapeutic relationships with these AI companions, finding constant support and reducing loneliness. However, concerns are rising about a potential mental health crisis, with reports of users experiencing delusions and psychosis after extensive interactions, particularly among lonely or stressed individuals. UCSF psychiatrist Keith Sakata has observed 12 hospitalizations linked to chatbot use. On the financial front, veteran investor Mark Mobius discussed a potential correction in AI stock valuations, following a meeting between US President Donald Trump and Chinese President Xi Jinping on November 7, 2025.

Key Takeaways

• Tesla plans to build a "gigantic chip fab" or "Tesla terra fab" to produce AI chips for its self-driving cars and Optimus robots, aiming for 1 million wafer starts per month.
• Tesla is designing its custom AI5 chip, which it expects to be more power-efficient and cost-effective than Nvidia's Blackwell chip.
• Tesla is considering a partnership with Intel for its new chip manufacturing facility.
• Generalist AI launched GEN-, an embodied foundation model enabling robots to learn physical skills from 270,000 hours of real-world data.
• Samsung aims to sell 36 million units of its Galaxy S26 series in 2026, leveraging next-gen AI features and hardware upgrades like a 200MP camera.
• Mple.ai introduced an AI platform for sales training, offering automated coaching, skill gap identification, and personalized practice using real sales data.
• Maryland counties are implementing Dynatect's AI-powered platform for real-time IT security monitoring and vulnerability detection.
• Amazon is expanding its AI Studios, appointing Matt Newman as Head of Live-Action to develop generative AI tools for content creation.
• Ohio State University plans to hire 100 new AI faculty experts over the next five years to become a national leader in AI research and education.
• AI chatbots, including ChatGPT, are fostering deep, therapeutic relationships for some users but are also linked to mental health concerns, including delusions and psychosis, leading to hospitalizations.

Tesla needs huge chip factory for AI and robots

Elon Musk announced that Tesla will likely need to build a "gigantic chip fab" called a "Tesla terra fab." This factory is needed to produce enough chips for Tesla's growing AI and robotics projects. Currently, Tesla relies on suppliers like TSMC and Samsung but still faces shortages. The new factory would start with 100,000 wafer starts per month and aim for 1 million. Tesla is also designing its own AI5 chip and plans to produce the Cybercab in April.

Tesla plans huge AI chip factory eyes Intel deal

Elon Musk stated that Tesla will likely build a "gigantic chip fab" to produce AI chips. Tesla is currently designing its fifth-generation AI chip for its self-driving goals. Musk also mentioned that Tesla might work with Intel on this project. He shared these plans at the company's annual meeting.

Tesla may build massive chip plant for AI robots

Elon Musk announced that Tesla will probably build a "gigantic" chips factory to support its plans for self-driving cars and humanoid robots like Optimus. Tesla currently gets chips from companies like Nvidia and has deals with Samsung and TSMC. Musk also said Tesla might partner with Intel. The company is designing a custom chip that uses less power and costs much less than Nvidia's Blackwell chip. Tesla plans to start Cybercab production in April and expects Optimus robots to have advanced capabilities.

Tesla to build huge chip factory considers Intel help

Elon Musk announced that Tesla will likely build a "gigantic chip fab" to meet its growing need for semiconductors. This factory could produce 1 million wafers per month. Tesla needs these chips for its increasing investments in artificial intelligence and robotics. Musk also mentioned that Tesla is looking into a possible collaboration with Intel. He shared these plans at the annual shareholders meeting in Palo Alto, California, on November 7, 2025.

Tesla considers building huge chip factory for AI

Tesla CEO Elon Musk stated that the company will likely need to build a "gigantic" semiconductor factory. This factory would support Tesla's growing goals in artificial intelligence and robotics. Musk mentioned this during the company's third-quarter earnings call. The chips are needed for products like the Full Self-Driving software and the Optimus robot. Tesla is already working on custom AI chips, such as the D1 chip, and uses its Dojo supercomputer for AI training.

Tesla may build chip plant explores Intel partnership

Elon Musk indicated that Tesla might build its own large semiconductor factory to meet its increasing chip needs for AI and robotics. This factory could eventually produce one million wafer starts per month, starting at 100,000. Musk also said Tesla is considering a partnership with Intel's manufacturing arm. Tesla's custom AI5 processor is designed for its vehicles and robots, using less power and costing less than Nvidia's Blackwell chip. The company aims to scale vehicle and Optimus robot production, with FSD approval expected in China around February or March.

Tesla develops new AI chips for self-driving cars

Tesla is developing its next-generation AI5 chips to improve its self-driving system. These new chips promise more computing power and better energy efficiency, built with partners like TSMC and Samsung. While Tesla claims current hardware can handle unsupervised driving, robotaxis still use human safety drivers. Elon Musk is heavily focused on chips and even suggested Tesla might build its own chip factory, possibly with Intel. Meanwhile, Panasonic's Kansas plant produces 300,000 EV batteries daily, and a Nexperia chip shortage is impacting Japanese automakers like Honda and Nissan.

People find love and support with AI chatbots

A new trend shows people forming deep relationships with AI chatbots, with one in five American adults reportedly having an intimate encounter. Research from MIT suggests these connections can be therapeutic, offering constant support and reducing loneliness. Blake, 45, from Ohio, has been with his ChatGPT companion Sarina since 2022. Sarina helped him through a difficult period when his wife suffered from postpartum depression. Now, his wife even has her own AI friend named Zoe. Abbey, 45, from North Carolina, also fell in love with her ChatGPT bot, Lucian, after working at an AI incubator.

AI chatbots linked to mental health delusions

Evidence suggests that AI chatbots may be contributing to a new mental health crisis, with some users experiencing delusions and psychosis. Bloomberg Businessweek interviewed 18 people who suffered breaks from reality after extensive chatbot interactions. Cases include a retired math teacher hospitalized for psychosis and a woman who believed she was God after using ChatGPT. While OpenAI states chatbots can help process feelings, UCSF psychiatrist Keith Sakata has seen 12 hospitalizations linked to chatbot use. He notes that lonely, isolated individuals who use chatbots for many hours daily, especially under stress or drug use, appear more vulnerable.

Generalist AI unveils new robot learning model GEN-

Generalist AI introduced GEN-, a new embodied foundation model designed for robots to learn physical skills from real-world data. This model uses "Harmonic Reasoning," allowing it to think and act at the same time, which is crucial for robotics. GEN- works across different robot types, including humanoid systems. Researchers found that larger models, 7B and above, show a significant jump in capability, absorbing vast amounts of physical interaction data. The model was trained on 270,000 hours of real-world manipulation data collected globally.

Samsung aims for 36 million Galaxy S26 sales with AI

Samsung Electronics plans to sell 36 million units of its upcoming Galaxy S26 series in 2026. The company hopes to boost sales with advanced AI features and hardware upgrades. Samsung expects its mobile division to earn 130 trillion won, or about $90.7 billion, next year. The Galaxy S26 will feature next-gen AI, a custom processor, and new camera sensors, including a 200MP main sensor on the Ultra model. Despite a possible launch delay to February or March 2026, Samsung plans an aggressive marketing strategy to achieve its goals.

Mark Mobius discusses US China trade AI stock correction

Veteran investor Mark Mobius, founder of Mobius Emerging Opportunities Fund, shared his views on the US-China trade war and a potential correction in AI stock valuations. His comments followed a significant meeting between US President Donald Trump and Chinese President Xi Jinping. Mobius provided his estimates for how much AI stocks might drop in the short term. This discussion took place on November 7th, 2025.

Mple.ai launches AI platform for sales training

Mple.ai introduced a new AI-driven platform to improve sales training for businesses. This platform automates coaching, finds skill gaps, and offers personalized practice for sales teams. It uses AI role-play, conversation analysis, and real-time feedback to help sales reps learn faster. Mple.ai stands out by using real sales data to identify top performer behaviors and provide targeted coaching. The platform integrates with existing CRM systems and offers solutions for industries like pharmaceuticals, technology, and telecommunications. Early users have already seen measurable improvements in sales performance.

Maryland counties get AI tools for IT security

Maryland counties can now use Dynatect's AI-powered observability platform to improve their IT operations and cybersecurity. This platform offers full-stack monitoring, finds vulnerabilities in real time, and automatically identifies the cause of problems. It helps local governments deal with staffing issues, old systems, and growing digital needs. The technology also supports moving to cloud systems and makes services more reliable. A Solutions Showcase session will demonstrate how counties can achieve smarter, faster, and safer digital experiences on December 10, 2025, at the Hyatt Regency Chesapeake Bay Hotel.

Amazon names Matt Newman to lead AI Studios live-action

Amazon is expanding its AI Studios and has named Matt Newman as the Head of Live-Action. Newman, previously Head of Original Sports Content for Prime Video, will report to Cheng, who is now VP and Head of AI Studios, Amazon MGM Studios. The AI Studios aim to empower creators to use generative AI in content production with new tools and services. Three other executives, Fan, Lee, and Nakada, are also joining Cheng's team. Jay Marine will take over Cheng's former role overseeing the U.S. Prime Video business.

Ohio State to hire 100 AI expert faculty

Ohio State University announced a major plan to hire 100 new faculty members with expertise in Artificial Intelligence over the next five years. This initiative will boost AI research and education across many subjects, making Ohio State a national leader in AI. The new faculty will join one of three groups focusing on Foundational AI, Applied AI, or Responsible AI and Cybersecurity. The first hires will start in autumn 2026, adding to the 300 scholars already working with AI at the university. This plan is part of Ohio State's larger strategy to integrate AI throughout its academic programs.

Sources

• Elon Musk says Tesla needs to build 'gigantic chip fab' to meet AI and robotics needs
• Musk plans Tesla mega AI chip fab, mulls potential Intel partnership
• Elon Musk: Tesla likely to build "gigantic" chips plant
• Elon Musk says Tesla will build its own chip fab, looking into Intel collab
• Musk says Tesla may build “gigantic” chip fab to power its AI ambitions (TSLA:NASDAQ)
• Tesla weighs building in-house chip plant, explores Intel foundry tie-up
• Tesla’s Next Gen Chips Are Coming. What Does That Mean For Self-Driving?
• Inside Three Longterm Relationships With A.I. Chatbots
• The Chatbot Delusions: Is AI Contributing to a Novel Mental Health Crisis?
• Generalist AI Introduces GEN-θ: A New Class of Embodied Foundation Models Built for Multimodal Training Directly on High-Fidelity Raw Physical Interaction
• Samsung’s Galaxy S26 Gambit: Targeting 36 Million Sales Amid AI Boom
• Mobius on US-China Trade War, AI Correction
• Mple.ai Launches AI Coaching Platform to Redefine Enterprise Employee Sales Training
• Empowering Maryland Counties with AI-Driven Observability and Security
• Amazon Builds Out AI Studios With Sports Docs Boss Matt Newman Named Head Of Live-Action
• Ohio State to hire 100 new faculty with AI expertise