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Tesla’s mega AI chip factory set to launch in seven days, Musk announces

Saturday 14 March 2026 - 21:45
Tesla’s mega AI chip factory set to launch in seven days, Musk announces

Tesla CEO Elon Musk announced that the company’s Terafab project, aimed at producing advanced artificial intelligence chips, is scheduled to launch in just seven days. The project represents a significant step in Tesla’s efforts to power its autonomous driving technology with in-house AI hardware.

The upcoming facility will manufacture Tesla’s fifth-generation AI chip, designed to support the company’s Full Self-Driving software and other autonomous features. Musk previously suggested that Tesla might need to build a “gigantic chip fab” to meet the growing demand for AI chips.

While Tesla has discussed potential collaborations with major semiconductor companies such as Intel, Samsung, and Taiwan’s TSMC, no formal agreements have been confirmed. Musk emphasized that even with supplier contributions, Tesla’s current chip supply would not fully meet its autonomous driving ambitions.

This launch highlights the increasing importance of specialized AI hardware in the automotive sector, as manufacturers race to enhance vehicle automation and performance through advanced computing technology.

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