Tesla's Optimus V3 Targets Human-Level Dexterity and $20,000 Production Cost, Powered by 40x Faster AI5 Chip

Tesla is finalizing the design of its Optimus v3 humanoid robot, which CEO Elon Musk asserts will possess manual dexterity comparable to a human and be produced in very high volumes. Speaking at the All-In Summit, Musk detailed the ambitious project, emphasizing its complex hand design and an AI mind capable of navigating and comprehending reality. This development positions Optimus as a central pillar of Tesla's "Master Plan Part IV," focusing on artificial intelligence and robotics.

Musk highlighted the significant engineering challenges, particularly the "hands problem," which he described as the majority of the robot's engineering difficulty. He noted that existing robotics companies lack the capability to produce such complex hands, integrated AI, and achieve mass production. Tesla has had to create an entirely new supply chain for Optimus, designing components like electric motors, gearboxes, and control electronics from scratch due to the non-existence of suitable parts.

The company projects a marginal production cost of approximately $20,000 to $25,000 per unit once annual production reaches one million units. This cost is heavily influenced by the advanced AI chip integrated into the robot and the need for efficiency in its 26 actuators per arm. Musk believes that if successful, Optimus could become Tesla's "biggest product ever," potentially accounting for 80% of the company's future value.

A key enabler for Optimus's capabilities is Tesla's next-generation AI5 inference chip, which has recently completed its design review. Musk stated that AI5 will be "40 times better than AI4 by some measures," offering eight times more raw compute, nine times more memory, and five times more memory bandwidth. This chip, co-designed by Tesla's AI hardware and software teams, aims to overcome core limitations and achieve significant optimizations at the silicon level.

The development of Optimus is considered harder than any previous Tesla product, with the exception of SpaceX's Starship. Despite the challenges, Musk expressed confidence in the project's potential to revolutionize various industries by providing a versatile, generalized humanoid robot capable of performing a wide range of tasks. The company has not yet publicly revealed Optimus v3, with recent images showcasing earlier versions.