Tesla wants to provide cars with self-developed AI chip next year

Tesla announced during the presentation of its quarterly results that it plans to provide cars with a self-developed AI chip next year. The company also says it plans to increase production of Model 3 cars to 6,000 a week this month.

Pete Bannon, who is currently working on the Tesla chips, said during the quarterly results announcement that Tesla has now produced its own chip and that it has been placed in test cars, reports Electrek. This upgrade, referred to as “hardware 3” is also intended to replace existing computers in Tesla vehicles that currently have hardware 2 and 2.5.

Tesla is currently still using Nvidia technology in its cars, the site said. According to Tesla CEO Elon Musk, the new chips should be able to process 2000 frames per second instead of the current 200. At the end of last year it turned out that Jim Keller was working at Tesla on the self-developed chips for artificial intelligence. He has since switched to Intel and Bannon has taken over his position within Tesla.

Tesla reiterated when it released its quarterly results that it had achieved its target of 5,000 Model 3 vehicles per week by July. It wants to be at a weekly number of 6000 by the end of this month, it has announced. It expects to reach a target of 10,000 per week by the end of the year. For a long time, Tesla had to deal with production problems around the Model 3, as a result of which the intended objectives were not met.

The company suffered another quarterly loss. That was about $718 million this time around, up from $336 million in the same quarter in 2017. Revenue rose to $4 billion from $2.7 billion a year earlier and $3.4 billion in the previous quarter. Tesla expects to turn a profit in the last two quarters of this year and “become sustainably profitable for the first time in its history.” It recently carried out a reorganization for that reason.