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Elon Musk says Tesla’s massive AI chip manufacturing project could launch within days

Elon Musk, CEO of Tesla, said the company’s Terafab project aimed at producing artificial intelligence chips could be launched in about seven days, according to Reuters.

Musk previously suggested that Tesla might need to build a giant chip manufacturing facility in order to meet the growing demand for AI processing power, especially for autonomous driving technologies.

AI chips for autonomous driving

Read also: Wayve secures Nvidia and Microsoft backing in $1.2 billion round, reaches $8.6 billion valuation

Tesla is currently designing its fifth-generation AI chip, known as AI5, which is intended to support the company’s autonomous driving ambitions.

These chips power Tesla’s software platforms, including Tesla Full Self-Driving, the company’s advanced driver assistance and automation system.

During last year’s annual shareholder meeting, Musk also mentioned the possibility of collaborating with Intel, although he clarified that no formal agreement has been signed.

Partnerships with semiconductor manufacturers

Tesla already works with major chip manufacturers such as TSMC in Taiwan and Samsung to produce chips used in its systems.

However, Musk warned that even optimistic production scenarios from these suppliers might not meet the company’s future chip demand.

As a result, Tesla is considering building its own large-scale semiconductor facility, which Musk described as a “tera-scale” chip factory, potentially far larger than the company’s existing production sites.

Photo: AICERTs

Teodora Helerman
Teodora Helerman
Online editor, content writer, blogger, and social media specialist, with experience in writing and publishing news, creating original content, and adapting materials for various digital platforms.
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