Musk's xAI team is developing its own inference chip

Musk's xAI team is reportedly developing an inference chip called the X1, which will use TSMC's 3nm process and is scheduled to begin mass production in the third quarter of 2026, with the first batch of 300,000 units. In order to achieve his goal of reaching 50 million H100-scale computing power within five years, Musk decided to develop chips independently instead of relying on purchasing chips from Nvidia and AMD.