Did Musk provide technical details about the chip?

No, he did not provide any technical details or launch timeline.

How does the Dojo chip relate to this claim?

Tesla has the Dojo chip project for AI training, but it has not yet achieved the claimed performance.

Should investors take this claim seriously?

Caution is advised given Musk's history of exaggerated claims and the lack of concrete evidence.

Elon Musk Claims New Chip 2-3x Better Than NVIDIA at 10% Cost

Tesla (TSLA) CEO Elon Musk claimed during a conversation with Ron Baron that he is building a chip that will be "two to three times better than NVIDIA" at 10% of the cost. No technical details or timeline were provided, raising skepticism about the claim.

June 9, 2026

2 min read

Source: 24/7 Wall St.

Key Numbers

performance claim

2-3 times better

cost claim

10% of cost

In a statement that stirred Silicon Valley, Tesla (TSLA) CEO Elon Musk said he is developing a new chip that will be "two to three times better than NVIDIA" at just 10% of the cost. The remark came during a conversation with Baron Capital founder Ron Baron and was widely circulated after being posted on X by @carm1nee.

Details of the Claim

Musk said the chip focuses on AI applications and will rival NVIDIA's dominant products. However, he provided no technical specifications, project name, or launch timeline. It is unclear whether the chip will be used solely in Tesla vehicles or sold commercially.

Context

Tesla already has an in-house chip project called Dojo, designed for AI training, but it has not yet achieved the performance Musk described. NVIDIA (NVDA) dominates the AI chip market with products like the H100 and B200, and invests heavily in R&D.

What It Means for Investors

Investors should treat this claim with caution. Musk has a history of making bold statements that sometimes fail to materialize, such as promises of full self-driving. If realized, the chip could disrupt the market, but until concrete evidence emerges, it remains speculation.

Frequently Asked Questions

Musk claimed he is building a chip that is 2-3 times better than NVIDIA's at 10% of the cost.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.