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

Daniel Nenni

Admin
Staff member
Elon Musk Lip-Bu Tan Wafer Deal.jpg


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

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

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.

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.

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.

"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.

 
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"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.


What will be first, landing on Mars or 1 M wspm fab built/operated by Elon?
https://en.wikipedia.org/wiki/List_of_predictions_for_autonomous_Tesla_vehicles_by_Elon_Musk
 
"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.

As much as I admire Musk he is not always right. Hopefully he partners with Intel on this to keep manufacturing in the US.
 
I wonder if Pat G ever tried to approach Musk for chip business. I feel like they both have some traits in common.. Hubris, for example.. (and a love of engineering).
 
"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.

As much as I admire Musk he is not always right. Hopefully he partners with Intel on this to keep manufacturing in the US.
No matter where the fabs are or who Musk partners with, where are the EUV machines going to come from? Doesn't ASML's backlog already stretch into 2028 or beyond? Also, how would this "partnership" work? Who owns the fab, Tesla, or the partner, or shared? (TSMC, Samsung, Intel, or Rapidus?) Who runs the fab? (Tesla? That's not serious.) Does Musk get a voice in day-to-day issues? Does Musk get to sleep on the production floor? :ROFLMAO: If the fab is in the US or Taiwan, where will the workers come from for a terafab? Construction or otherwise? Inquiring minds are... curious.
 
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March 14 (Reuters) - Tesla (TSLA) CEO Elon Musk said on Saturday that the company's Terafab project to make artificial ‌intelligence chips will launch in seven days.

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

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.

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.

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.

"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.


Does it have something to do with the SpaceX (owns xAI and X/twitter) IPO even it's a Tesla project? There are several AI companies (OpenAI, Anthropic, etc.) rumored to go public in 2026. SpaceX is in a tightened capital market and needs some positive spin or big dreams to boost its IPO valuation.
 
Does it have something to do with the SpaceX (owns xAI and X/twitter) IPO even it's a Tesla project? There are several AI companies (OpenAI, Anthropic, etc.) rumored to go public in 2026. SpaceX is in a tightened capital market and needs some positive spin or big dreams to boost its IPO valuation.

Yes - The "Terafab", and AI5/AI6 chips benefit both Tesla and xAI (Grok)... "benefitting" SpaceX. AI5 is designed to be used for cars, robots, and AI datacenters.

(xAI folded under SpaceX isn't necessarily a bad thing; when the shoes eventually fall in the AI market - the AI companies without additional revenue streams or use cases will be most vulnerable.)

..

re: Capital Market - Is the market really tight? This isn't the 1970s, or ~2001. The interest rates are dropping, and there's definitely a lot of capital flying around in the market based on the performance of the indexes the last few years.. Though there are .. hot and cold wars.
 
Update, looks like Terafab is moving from conjecture to a project:

View attachment 4330

I wonder how Samsung feels about this? :ROFLMAO:

Elon Musk Samsung SemiWiki.jpg


 
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Elon kicked out all but two of xAI's founders and is now rebuilding it from scratch as he put it yesterday. So what will he be running in his existing data centers? Or will he idle them or rent them out to others as he rebuilds xAI?

To me, he seems to be running Trump's playbook, announcing the next big shiny thing in order to distract from the prior one that it turns out is not doing so great after all. Lather rinse repeat.
 
Is Elon Musk's chip design and manufacturing venture essentially a leading-edge logic IDM?

Why do people believe that all those inherent IDM problems will magically go away?
 
I wonder how Samsung feels about this? :ROFLMAO:

View attachment 4332


Until Elon Musk starts making memory chips, Samsung probably won’t worry too much.
 
Is Elon Musk's chip design and manufacturing venture essentially a leading-edge logic IDM? Why do people believe that all those inherent IDM problems will magically go away?

Looking at it that way I do see serious problems. It takes an ecosystem to make leading edge chips.

Maybe with Intel's experience Elon could succeed here. It would be awsome to see Elon and Lip-Bu team up!
 
There is a Tesla slip and a Samsung slip. Elon is learning semiconductors the hard way. Are we really shocked by this? Hopefully this pushes Elon closer to Lip-Bu and crew.

Hmm, not seeming to be a "marriage out of love and trust"? Happy to know that CC Wei is keeping Musk at a safe distance.....
 
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