Tesla is quietly making its own AI chip for self-driving cars

In a recent earnings call, Tesla CEO Elon Musk revealed the automaker has been'stealth' developing a custom-built AI chip for at least two years. The self-driving technology is to be used in Tesla's Model 3, Model X and Model S Autopilot systems, and according to Musk, it will give its autonomous cars additional processing power. Tesla Director Pete Bannon explained the new chip -- which will be incorporated in a third update for Tesla's Autopilot hardware -- is currently undergoing road tests. Unlike previous Autopilot versions which relied on NVIDIA GPUs, the upgraded hardware will reportedly process a lofty 2,000 frames per second -- a significant rise from 200. Tesla has long entertained the possibility of manufacturing in-house AI chips for its autonomous EVs.