Musk suggests that automakers need to develop their own chips to surpass Nvidia's.

During the earnings call, Musk stated that if automakers' self-developed chips cannot surpass general-purpose AI chips like those from Nvidia in terms of power consumption and performance, then there's no point in developing them. He believes that Tesla's focus on a single customer's needs will give it a significant advantage in simplicity and optimization, allowing it to deliver industry-leading performance once its AI5 chip is mass-produced.