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Musk says Tesla's mega AI chip fab project to launch in seven days
Tesla's Terafab aims to produce 100–200 billion AI chips yearly for autonomous driving, robotics, and xAI, addressing supply constraints and reducing external dependencies.
- On Saturday, Elon Musk announced Tesla Inc.'s Terafab project will launch in seven days, targeting March 21, 2026.
- Musk told investors that Tesla first confirmed Terafab on its January 28, 2026 earnings call to avert a supply constraint projected within three to four years.
- Tesla says the project will produce 100–200 billion AI and memory chips annually, targeting 100,000 wafer starts per month, with an estimated cost of $20 billion.
- Tesla plans to use Terafab chips for Full Self-Driving software, Cybercab robotaxi programme, Optimus humanoid robot line, and to supply xAI’s Dojo and Grok training infrastructure.
- Last month Tesla recruited AI chip designers in South Korea and Musk has teased partnerships with TSMC and Samsung while previously considering Intel Corp.
34 Articles
34 Articles
Musk to Start TerraFab for House Chip Production Within a Week. Tesla CEO Elon Musk announced that he will begin a project within a week to build a massive semiconductor factory to produce the semiconductors needed for autonomous driving and AI technology. CEO Musk stated on the 14th (local time)...
Musk reveals Tesla’s ‘Terafab’ AI chip facility to launch next week
On Saturday, Tesla CEO Elon Musk announced the launch of the company’s “Terafab” project to manufacture artificial intelligence chips, saying the facility could begin operations within the next seven days.
Elon Musk said Tesla's Terafab project to make Al chips will start within seven days. Musk had said last year that Tesla might need to build "a giant factory" to make Al chips. Musk, on the other hand, last year outlined possible production plans. He said at the time that the electric vehicle maker could partner with Intel. "You know, maybe we'll do something with Intel," he said. "We haven't signed any deals, but maybe it's worth discussing wit…
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