Tesla set to launch ‘Gigantic’ Chip fab project in seven says: Elon Musk

Tesla CEO Elon Musk said on Saturday that the company’s Terafab project to produce artificial intelligence chips will launch in seven days. Musk had said last year that the company might need to build “a gigantic chip fab” to support the production of AI chips required for its future technologies. Tesla is developing its fifth-generation AI chip to support its autonomous driving plans, and Musk had outlined possible manufacturing strategies during the company’s annual meeting last year.

At the time, Musk said the electric vehicle maker could consider working with Intel and noted that discussions with the chipmaker could take place. “We haven’t signed any deal, but it’s probably worth having discussions with Intel,” he said. Tesla did not immediately respond to a Reuters request seeking further details about the project.

Musk has previously referred to the AI5 chip and said Tesla was also working with Taiwan’s TSMC and South Korea’s Samsung. These chips are used in Tesla’s autonomous driving systems, including its Full Self-Driving software. Speaking at Tesla’s annual general meeting last year, Musk said that even the most optimistic projections for chip supply from existing partners may not meet the company’s future demand. He added that Tesla may need to build its own large-scale chip manufacturing facility, which he described as a “terafab”, to reach the required production volumes.