Tesla launched the Terafab project to manufacture proprietary advanced AI chips in-house. The move deepens the company's vertical integration strategy for artificial intelligence.
Elon Musk also introduced Macrohard, a joint venture between Tesla and xAI. This entity will focus on developing generative AI applications for enterprise-level clients.
The initiatives support the development of Full Self-Driving technology, the Optimus robot, and various software services. Tesla shares increased in early trading following the announcement.
The Terafab facility aims to eliminate supply chain constraints for millions of planned AI-enabled vehicles and robots. Analysts expressed skepticism regarding Tesla's lack of semiconductor manufacturing experience. Market observers noted similarities to the company's previous challenges scaling 4680 battery cell production.