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Tesla is tapping partners from Asia to boost its 4680 battery cell ramp: report

Credit: Tesla Inc.

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Tesla seems to be doing what it can to ensure that its 4680 battery cell production efforts are as supported as possible. To accomplish this, Tesla is reportedly recruiting materials suppliers from Asia in a bid to lower the cost and increase the energy of its next-generation batteries. 

Tesla’s 4680 battery cells are crucial for the company’s future in the automotive sector. Announced during Battery Day in September 2020, Tesla’s 4680 cells are expected to pave the way for a 50% cost reduction in cell cost through several innovations, such as a dry electrode coating process. The ramp of the battery cell, however, has proven challenging. 

Citing people reportedly familiar with the matter, Reuters noted that Tesla has now tapped China’s Ningbo Ronbay New Energy and Suzhou Dongshan Precision Manufacturing to help optimize the costs of 4680 battery cell production in the United States. The details of the deal, however, have not been shared as of writing. 

Considering recent reports about Tesla and its battery strategy, the electric vehicle maker’s collaboration with Ningbo and Suzhou is not that surprising at all. Previously, reports have emerged stating that Tesla had signed a deal with South Korea’s L&F Co to supply high-nickel cathodes to the company. The high-nickel cathodes are expected to increase the energy density of the 4680 cells, one of the publication’s sources noted. 

Apart from this, longtime battery suppliers such as Japan’s Panasonic and South Korea’s LG Energy Solution are also contributing to the electric vehicle maker’s battery ramp by producing the cells themselves. Panasonic is currently running a pilot line for 4680 cells at its Wakayama factory. LG, on the other hand, has noted that it is looking to open a 4680 battery cell production line at its Ochang factory in the second half of 2023. 

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The publication’s sources stated that Tesla’s strategy is an insurance policy of sorts to ensure the production of 4680 vehicles. One of Reuters’ sources also stated that LG and Panasonic are expected to supply the battery cells for the Cybertruck. Elon Musk, for his part, mentioned last October during the Q3 2022 earnings call that Cybertruck production would not be dependent on 4680 cells, which hinted that the all-electric pickup truck could be initially launched with 2170 cells. 

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Nvidia CEO Jensen Huang explains difference between Tesla FSD and Alpamayo

“Tesla’s FSD stack is completely world-class,” the Nvidia CEO said.

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Credit: Grok Imagine

NVIDIA CEO Jensen Huang has offered high praise for Tesla’s Full Self-Driving (FSD) system during a Q&A at CES 2026, calling it “world-class” and “state-of-the-art” in design, training, and performance. 

More importantly, he also shared some insights about the key differences between FSD and Nvidia’s recently announced Alpamayo system. 

Jensen Huang’s praise for Tesla FSD

Nvidia made headlines at CES following its announcement of Alpamayo, which uses artificial intelligence to accelerate the development of autonomous driving solutions. Due to its focus on AI, many started speculating that Alpamayo would be a direct rival to FSD. This was somewhat addressed by Elon Musk, who predicted that “they will find that it’s easy to get to 99% and then super hard to solve the long tail of the distribution.”

During his Q&A, Nvidia CEO Jensen Huang was asked about the difference between FSD and Alpamayo. His response was extensive:

“Tesla’s FSD stack is completely world-class. They’ve been working on it for quite some time. It’s world-class not only in the number of miles it’s accumulated, but in the way it’s designed, the way they do training, data collection, curation, synthetic data generation, and all of their simulation technologies. 

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“Of course, the latest generation is end-to-end Full Self-Driving—meaning it’s one large model trained end to end. And so… Elon’s AD system is, in every way, 100% state-of-the-art. I’m really quite impressed by the technology. I have it, and I drive it in our house, and it works incredibly well,” the Nvidia CEO said. 

Nvidia’s platform approach vs Tesla’s integration

Huang also stated that Nvidia’s Alpamayo system was built around a fundamentally different philosophy from Tesla’s. Rather than developing self-driving cars itself, Nvidia supplies the full autonomous technology stack for other companies to use.

“Nvidia doesn’t build self-driving cars. We build the full stack so others can,” Huang said, explaining that Nvidia provides separate systems for training, simulation, and in-vehicle computing, all supported by shared software.

He added that customers can adopt as much or as little of the platform as they need, noting that Nvidia works across the industry, including with Tesla on training systems and companies like Waymo, XPeng, and Nuro on vehicle computing.

“So our system is really quite pervasive because we’re a technology platform provider. That’s the primary difference. There’s no question in our mind that, of the billion cars on the road today, in another 10 years’ time, hundreds of millions of them will have great autonomous capability. This is likely one of the largest, fastest-growing technology industries over the next decade.”

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He also emphasized Nvidia’s open approach, saying the company open-sources its models and helps partners train their own systems. “We’re not a self-driving car company. We’re enabling the autonomous industry,” Huang said.

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Elon Musk confirms xAI’s purchase of five 380 MW natural gas turbines

The deal, which was confirmed by Musk on X, highlights xAI’s effort to aggressively scale its operations.

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Credit: xAI/X

xAI, Elon Musk’s artificial intelligence startup, has purchased five additional 380 MW natural gas turbines from South Korea’s Doosan Enerbility to power its growing supercomputer clusters. 

The deal, which was confirmed by Musk on X, highlights xAI’s effort to aggressively scale its operations.

xAI’s turbine deal details

News of xAI’s new turbines was shared on social media platform X, with user @SemiAnalysis_ stating that the turbines were produced by South Korea’s Doosan Enerbility. As noted in an Asian Business Daily report, Doosan Enerbility announced last October that it signed a contract to supply two 380 MW gas turbines for a major U.S. tech company. Doosan later noted in December that it secured an order for three more 380 MW gas turbines.

As per the X user, the gas turbines would power an additional 600,000+ GB200 NVL72 equivalent size cluster. This should make xAI’s facilities among the largest in the world. In a reply, Elon Musk confirmed that xAI did purchase the turbines. “True,” Musk wrote in a post on X. 

xAI’s ambitions 

Recent reports have indicated that xAI closed an upsized $20 billion Series E funding round, exceeding the initial $15 billion target to fuel rapid infrastructure scaling and AI product development. The funding, as per the AI startup, “will accelerate our world-leading infrastructure buildout, enable the rapid development and deployment of transformative AI products.”

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The company also teased the rollout of its upcoming frontier AI model. “Looking ahead, Grok 5 is currently in training, and we are focused on launching innovative new consumer and enterprise products that harness the power of Grok, Colossus, and 𝕏 to transform how we live, work, and play,” xAI wrote in a post on its website. 

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Elon Musk’s xAI closes upsized $20B Series E funding round

xAI announced the investment round in a post on its official website. 

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Credit: xAI

xAI has closed an upsized $20 billion Series E funding round, exceeding the initial $15 billion target to fuel rapid infrastructure scaling and AI product development. 

xAI announced the investment round in a post on its official website. 

A $20 billion Series E round

As noted by the artificial intelligence startup in its post, the Series E funding round attracted a diverse group of investors, including Valor Equity Partners, Stepstone Group, Fidelity Management & Research Company, Qatar Investment Authority, MGX, and Baron Capital Group, among others. 

Strategic partners NVIDIA and Cisco Investments also continued support for building the world’s largest GPU clusters.

As xAI stated, “This financing will accelerate our world-leading infrastructure buildout, enable the rapid development and deployment of transformative AI products reaching billions of users, and fuel groundbreaking research advancing xAI’s core mission: Understanding the Universe.”

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xAI’s core mission

Th Series E funding builds on xAI’s previous rounds, powering Grok advancements and massive compute expansions like the Memphis supercluster. The upsized demand reflects growing recognition of xAI’s potential in frontier AI.

xAI also highlighted several of its breakthroughs in 2025, from the buildout of Colossus I and II, which ended with over 1 million H100 GPU equivalents, and the rollout of the Grok 4 Series, Grok Voice, and Grok Imagine, among others. The company also confirmed that work is already underway to train the flagship large language model’s next iteration, Grok 5. 

“Looking ahead, Grok 5 is currently in training, and we are focused on launching innovative new consumer and enterprise products that harness the power of Grok, Colossus, and 𝕏 to transform how we live, work, and play,” xAI wrote. 

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