Musk says Tesla's 'gigantic' chip fab project to launch in seven days

Musk says Tesla's mega AI chip fab project to launch in seven days

Tesla's Terafab Project and AI Chip Manufacturing Plans

Announcement of Terafab Launch

March 14 (Reuters) - Tesla CEO Elon Musk said on Saturday that the company's Terafab project to make artificial intelligence chips will launch in seven days. 

Background and Previous Statements

Need for a Gigantic Chip Fab

Musk had said last year that Tesla probably will have to build "a gigantic chip fab" to make artificial intelligence chips. 

Fifth-Generation AI Chip Design

Tesla is designing its fifth-generation AI chip to power its autonomous ambitions, and Musk at the company's annual meeting last year laid out potential manufacturing plans. 

Potential Partnerships

Discussions with Intel

Musk had said at the time that the EV maker could work with Intel and said, "You know, maybe we'll, we'll do something with Intel."

"We haven't signed any deal, but it's probably worth having discussions with Intel," he had said. 

Collaborations with TSMC and Samsung

Tesla did not immediately respond to a Reuters request seeking more details about the project. 

Musk has teased the AI5 chip before and reiterated that Tesla was also partnering with Taiwan's TSMC and South Korea's Samsung. The AI chips power Tesla's autonomous driving systems, including the Full Self-Driving software.

Production Challenges and Future Outlook

"Even when we extrapolate the best-case scenario for chip production from our suppliers, it's still not enough," Musk said last year, at Tesla's AGM. 

"So I think we may have to do a Tesla terafab. It's like giga but way bigger. I can't see any other way to get to the volume of chips that we're looking for. So I think we're probably going to have to build a gigantic chip fab. It's got to be done," he said.

(Reporting by Akanksha Khushi in Bengaluru, Editing by Louise Heavens)