Tesla traversed the U.S. autonomously, something that seemed improbable just a few years ago.
Looking ahead, you can anticipate even greater advancements from Tesla’s FSD, as CEO Elon Musk is touting a significant upgrade imminent for upcoming Tesla models. These performance enhancements will be fueled by a new custom inference chip, the AI5, first revealed in 2024. During a Q3 2025 earnings call with investors in October 2025, Musk asserted that the new chip will outperform the AI4, which currently powers FSD in Tesla EVs. Musk asserts that the AI5 chip will surpass the AI4 chip by a factor of 40 in certain metrics.
While Musk has not clarified which metrics see the AI5 being 40 times quicker than the AI4, it seems Tesla’s leader is quite optimistic about the overall efficiency of the new chip, intending to manufacture them in bulk and utilize the excess in the company’s data centers. The AI4 has been in use for three years at this point, powering Tesla’s so-called FSD Hardware 4.0, which began being installed in Tesla’s EVs in January 2023.