Tesla is considering a partnership with Intel to produce its fifth-generation AI chips, a move that signals a potential major strategic shift for the electric vehicle maker. The discussions, revealed by CEO Elon Musk, come as Tesla faces significant supply constraints from its current partners, TSMC and Samsung, for the advanced hardware needed to power its autonomous driving systems. Musk noted that even best-case production scenarios from existing suppliers would not be enough to meet Tesla's future needs. The potential collaboration is viewed as a significant opportunity for both companies. For Tesla, it could secure the vast quantity of chips required for its self-driving ambitions, potentially at a fraction of the cost of competitors like Nvidia. For Intel, securing Tesla as a customer for its manufacturing services would be a major win in its effort to compete in the AI chip market. The news prompted a 4% rise in Intel's shares in after-hours trading, underscoring the market's positive reception to the potential deal.