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Elon Musk's Tesla’s ‘Terafab’ AI chip project to launch in seven days

Musk said Tesla is working with chipmakers such as TSMC in Taiwan and Samsung Electronics in South Korea

By Zainab Talha |
Elon Musk's Tesla’s ‘Terafab’ AI chip project to launch in seven days
Elon Musk's Tesla’s ‘Terafab’ AI chip project to launch in seven days

Elon Musk said on Saturday that Tesla plans to launch its Terafab project — a large-scale facility aimed at producing artificial intelligence chips — within the next seven days.

Musk has previously suggested that Tesla may need to build a massive chip manufacturing plant to support its growing demand for AI processors. 

The chips are expected to power the company’s next-generation autonomous driving systems and other AI-related technologies.

The electric vehicle maker is currently developing its fifth-generation AI processor, often referred to as the AI5 chip, which will support Tesla’s ambitions in self-driving technology, including its Full Self-Driving software.

During Tesla’s annual shareholder meeting last year, Musk outlined possible manufacturing plans for the chips and indicated that the company could explore partnerships with established semiconductor manufacturers.

He mentioned potential collaboration with Intel, saying the company had not signed any agreement but discussions could take place. 

Musk has also said Tesla is working with chipmakers such as TSMC in Taiwan and Samsung Electronics in South Korea.

According to Musk, the demand for AI chips required for Tesla’s autonomous systems could exceed current supply from external partners.

Tesla has not yet provided additional details about the Terafab project, and the company did not immediately respond to requests for comment.