Key Takeaways
- Tesla (TSLA) is significantly advancing its in-house AI chip strategy, with the upcoming AI5 and AI6 chips slated for production by industry giants TSMC (TSM) and Samsung (005930.KS) in the U.S., targeting substantial performance gains of up to 40x over its predecessor for AI5 and a further 2x for AI6.
- Major automakers, including General Motors (GM), Tesla (TSLA), and Toyota (TM), are actively urging the Trump Administration to extend the United States-Mexico-Canada Agreement (USMCA), submitting filings to the USTR to ensure continued trade benefits.
- Amazon (AMZN) has issued a firm request to Perplexity to remove its platform from the "Comet Experience," citing concerns about third-party applications operating transparently when facilitating customer purchases.
Tesla Accelerates AI Chip Development with Dual Foundry Strategy
Tesla (TSLA) is making significant strides in its artificial intelligence (AI) chip development, with CEO Elon Musk confirming that the company's next-generation AI5 chip will be produced by both Taiwan Semiconductor Manufacturing Company (TSMC) (TSM) in Arizona and Samsung Electronics (005930.KS) in Texas. This dual-foundry approach aims to bolster Tesla's U.S.-based chip supply chain and ensure an oversupply of chips for its vehicles, Optimus robots, and data centers.
The AI5 chip, described by Musk as an "epic chip," is expected to deliver up to 40 times the performance of its predecessor, the AI4 chip. While slightly different versions of the AI5 chip will be produced by TSMC and Samsung due to variations in their fabrication processes, the overarching goal is for Tesla's AI software to function identically across all chips. Chip samples are anticipated in 2026, with mass production targeted for early 2027.
Following the AI5, Tesla's AI6 chip is projected to utilize the same manufacturing facilities as the AI5 and is expected to deliver approximately 2x the performance of the AI5. Samsung secured a substantial $16.5 billion contract for the production of the AI6 processor. The AI6 is also designed to integrate both inference and training capabilities, potentially succeeding the Dojo platform for large-scale AI model training. Musk has also hinted at the rapid succession of AI7 and AI8 chips, with AI8 described as "out of this world".
Automakers Advocate for USMCA Extension Amidst Trade Discussions
In a concerted effort, leading automotive manufacturers General Motors (GM), Tesla (TSLA), and Toyota Motor Corp. (TM) have formally urged the Trump Administration to extend the United States-Mexico-Canada Agreement (USMCA). These companies have sent submissions to the United States Trade Representative (USTR), emphasizing the importance of the trade pact for the industry.
The appeal comes as the Trump administration recently extended tariff relief for automakers importing vehicle parts until 2030, with favorable provisions under USMCA for vehicles that meet specific origin criteria. Automakers are particularly seeking additional flexibilities or modifications to the USMCA's rules of origin, especially for electric vehicles (EVs) and hybrid vehicles, to ensure continued benefits and support local production initiatives.
Amazon Demands Removal from Perplexity's Comet Experience
Amazon (AMZN) has publicly stated that it has "repeatedly requested" that Perplexity remove Amazon from its "Comet Experience". The e-commerce giant emphasized that it is "fairly straightforward that third-party apps offering to make purchases on behalf of customers from other businesses should operate openly".
This statement highlights Amazon's concern regarding transparency and the operational practices of agentic third-party applications like Perplexity's Comet, particularly when they facilitate transactions or interactions involving Amazon's platform on behalf of users.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.