Tesla to Launch Terafab AI Chip Project in Seven Days, Says Elon Musk

Tesla (TSLA.O) CEO Elon Musk announced on Saturday that the company’s Terafab project, aimed at producing artificial intelligence (AI) chips, will launch in seven days.

Last year, Musk mentioned that Tesla might need to build a “gigantic chip fab” to meet its AI chip demands. The new Terafab will produce Tesla’s fifth-generation AI chip, which powers the company’s autonomous driving systems, including the Full Self-Driving software.

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At Tesla’s annual meeting last year, Musk also discussed potential manufacturing partnerships, including Intel (INTC.O). He said, “We haven’t signed any deal, but it’s probably worth having discussions with Intel.”

Tesla has not yet provided more details about the Terafab project when asked by Reuters.

Musk has previously mentioned that Tesla is working with Taiwan’s TSMC (2330.TW) and South Korea’s Samsung (005930.KS) to produce its AI chips. However, he noted that even with the best-case production from suppliers, it would still not be enough to meet Tesla’s chip volume needs.

He explained last year, “So I think we may have to do a Tesla Terafab. It’s like a giga factory but much bigger. I can’t see any other way to reach the volume of chips we need. It has to be done.”