Part 3/11:
What makes AI-5 particularly innovative is Tesla’s approach to vertical integration—Tesla isn't relying on external chip manufacturers like Nvidia, but instead has merged its AI hardware and software teams into a unified unit dedicated solely to developing this new processor. This mirrors Apple’s transition from Intel to its M-series chips, offering improved performance, energy efficiency, and system integration. Musk envisions AI-5 to be a "universal" chip, capable of running local inferences across Tesla's vehicles and robots, making it a core component across Tesla's ecosystem.