Tesla, SpaceX will keep buying Nvidia chips despite in-house silicon push

Tesla’s continued reliance on Nvidia demonstrates that proprietary silicon remains a long-term hedge rather than an immediate replacement for third-party hardware in the training of autonomous models. For the streaming and edge AI ecosystem, this signal validates Nvidia's continued dominance in high-performance compute even among the most vertically integrated tech giants. The emphasis on edge-optimized silicon (AI5) suggests Tesla is prioritizing low-latency inference for physical AI over general-purpose data center training. Watch for the December 2026 tape-out milestone for the AI6 chip as a signal of Tesla's ability to maintain its aggressive nine-month chip design cycle.

The relationship between Elon Musk's ventures and Nvidia has evolved into a structural dependency, with Tesla spending an estimated $10 billion on the chipmaker's hardware by late 2025 to train its Full Self-Driving (FSD) models, per Basenor and Forbes reporting in June 2026. This was further solidified in January 2026 when Nvidia CEO Jensen Huang confirmed a $2 billion strategic investment in xAI’s $20 billion funding round. This financing directly supports the expansion of the Colossus supercluster in Memphis, which integrated 555,000 GPUs by January 2026 to power training for Grok models, according to reports from Introl and Financial Content.

To eventually reduce this dependency, Tesla has established a $16.5 billion agreement with Samsung Electronics to manufacture chips at its 2-nanometer plant in Taylor, Texas, per Yahoo and Benzinga reports in March and June 2026. This deal underpins the production roadmap for the AI6 chip, which is slated for mass production in the second half of 2027. Additionally, the Terafab Project represents a massive escalation in capital expenditure; SpaceX’s S-1 filing in June 2026 revealed a $122 billion total investment target for a vertically integrated manufacturing complex in Bastrop, Texas, aimed at doubling the current U.S. annual chip output.

Competitors are also formalizing their infrastructure responses. Per Financial Content in January 2026, Microsoft and OpenAI accelerated their "Project Stargate" initiative, bringing a 450,000-GPU Blackwell campus online in Abilene, Texas. Meanwhile, Nvidia is diversifying its own reach into physical AI; per Forbes, the company unveiled its first commercial humanoid robot in June 2026, positioning its Isaac platform as a direct competitor to Tesla’s Optimus program. This creates a complex dynamic where Nvidia remains the primary hardware supplier for Musk’s AI ambitions while simultaneously building the tools to challenge them in the robotics market.