Elon Musk launches ‘Terafab’ project to make own AI chips
Musk said “Terafab,” a manufacturing facility near Austin, Texas, will aim to produce one terawatt of computing power per year.
One terawatt is equivalent to one trillion watts. That’s slightly less than the total energy production capacity of the United States, according to one industry group.
Musk said that the project will be carried out jointly by electric vehicle company Tesla and rocket company SpaceX.
He did not disclose the initial investment. Previous US media reports put the figure at between $20 billion and $25 billion.
Musk, who has no prior experience with semiconductors, said Terafab is necessary because demand for computing power from Tesla and SpaceX is expected to far exceed that of global chip suppliers.
“We’re very grateful to our existing supply chain, Samsung, TSMC, Micron and others… but there’s a maximum rate at which they’re comfortable expanding,” Musk said. “This rate is much less than we would like… and we need chips, so we will build Terafab.”
A “high-tech factory” in Austin will have facilities to design, manufacture, test and improve each chip, Musk said.
Eventually, the project aims to make chips that will support 100 to 200 gigawatts of computing power on Earth and one terawatt in space.
Musk hasn’t given a timeline for Terafab’s output, and has previously promised big results on compressed timescales from other projects.
He said Terafab will ultimately help humanity become a “galactic civilisation” that can tap into the resources of other planets and stars.
