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Musk Says Tesla’s ‘Terafab’ AI Chip Project Launches in Seven Days

The move targets chip supply shortfalls that Musk says threaten Tesla’s autonomy roadmap.

Overview

  • Elon Musk announced that Terafab, Tesla’s in-house AI chip initiative, will begin in one week.
  • The project is intended to produce the company’s fifth-generation AI5 processors to support Full Self-Driving and broader autonomous systems.
  • Musk has argued existing supplier capacity will not meet Tesla’s needs, prompting a push for vertical integration.
  • He reiterated relationships with TSMC and Samsung and said talks with Intel could be worthwhile, with no agreement signed.
  • Tesla has not provided additional details or defined what “launch” entails and did not immediately respond to requests for comment.