Tesla wants to build it all in-house. The company has announced that it is building its own AI chips which will power the self-driving cars of the future.

Tesla CEO Elon Musk revealed the Tesla computer, known as Hardware 3, is meant to be incorporated into the Model S, X, and 3 to support the self-driving capabilities, TechCrunch reported. Until now, Tesla had been using Nvidia's Drive platform. However, having its own chips will gain Tesla more control on their product. The upgrade is expected to start rolling out next year.

Recently, Tesla signed agreements with Shanghai authorities that will allow it to open a plant in the Chinese city with an annual capacity of 500,000 cars. The U.S. carmaker signed agreements with the Shanghai municipal government, Shanghai Lingang Area Development Administration and Lingang Group, according to news website Knews, which is affiliated with state-owned Shanghai Media Group.

Tesla has been in protracted negotiations to open its own factory in China to help bolster its position in the country's fast-growing market for electric cars and to avoid high import tariffs. Meanwhile, Elon Musk, the billionaire CEO of Tesla and SpaceX earlier hinted out his firm's entry to India. Musk was interacting with people on micro-blogging site Twitter when a user from India expressed disappointment over Tesla's absense in the country.

Elon Musk said, "Would love to be in India. Some challenging government regulations, unfortunately. Deepak Ahuja, our CFO, is from India. Tesla will be there as soon as he believes we should." Reacting to Musk's tweet, celebrity writer Chetan Bhagat took to Twitter and asked the government to interfare as one of the famous CEOs of a global wants to enter India but could not due to the regulations.

With inputs from ANI