Tesla’s AI chip project, named Terafab, will launch in seven days, according to Elon Musk.
Terafab was first discussed at Tesla’s annual meeting last year, where Musk laid out potential manufacturing plans to shareholders.
The Terafab project is ambitious and would reportedly see Tesla produce 5th-generation AI chips across ten separate modules at the North Campus of Giga Texas. Each module could produce 100,000 microchips per month.
The project would be the first of its kind in the United States. It would offer Tesla a vertically integrated, in-house supply chain to power full self-driving, the Optimus project, and Dojo supercomputers. Although it is not confirmed, many speculate that these chips could also power SpaceX projects, including the Lunar Base and the proposed orbiting data centre.
According to some reports, Tesla has been working with Taiwan’s TSMC and the South Korean tech giant Samsung to design its 5th-generation AI chip. This would make sense, as Tesla currently has contracts with both manufacturers.
For industry insiders, the move does make sense for Tesla. The tech and auto industries are facing a significant microchip shortage amid immense demand for AI-related chips. For Tesla, producing its own chips would allow it to speed up production and ensure a stockpile for future projects across both Tesla and SpaceX.
