The tech and automotive worlds are now focused on a potential collaboration between Tesla and Intel. Industry rumors suggest Tesla is preparing to develop its next-generation AI chips on Intel’s 18A production process. If realized, this move would represent a significant shift in Tesla’s chip strategy.

Tesla-Intel alliance is coming

Tesla is investing heavily in AI chips it is developing for autonomous driving systems. It previously signed a $16.5 billion deal with Samsung Foundry to produce next-generation AI6 chips at its Texas factory.

I won't speculate much and can't disclose many details, but an $INTC and $TSLA partnership on the 18A node isn't a far-fetched guess. Intel has already disclosed that they are tapping into the custom silicon business, and since Elon loves having partners right alongside his 'area… pic.twitter.com/bo37h6MhTP

— Muhammad Zuhair (@mzuhair123) September 14, 2025

However, recent rumors suggest Tesla may take a different path and include Intel in this process. Intel’s recent announcement that it will focus on customized silicon solutions and advanced packaging technologies like Foveros further bolsters these claims.

Tesla’s current HW4 and AI5/AI6 chips in development are designed to provide the high memory capacity and processing power required for autonomous driving. However, new technologies are needed to overcome the production bottlenecks frequently cited by Elon Musk.

Intel’s 18A process offers Tesla advantages such as lower power consumption, higher density, and improved manufacturing efficiency. While these rumors are currently just rumors, Elon Musk’s openness to diverse manufacturing partnerships and Intel’s strategic decisions further solidify these rumors.

So, what are your thoughts on this? Share your thoughts with us in the comments section below.