Tesla to use Intel 14A for AI chips as Musk says it will be ‘ready for prime time’ when the multi-billion dollar Terafab project scales up
Tesla and Intel have announced a partnership to produce AI chips for Tesla’s Terafab project, Intel’s upcoming 14A technology node. Speaking during a Tesla earnings call, Elon Musk indicated that these chips will be “ready for prime time” once the Terafab project scales to meet production demands.
Terafab represents Musk’s ambitious effort to develop Tesla’s own semiconductor manufacturing capabilities, with applications across Tesla, xAI, and other ventures. The initiative involves reimagining silicon fabrication technology from the ground up, with Intel providing advanced chip manufacturing and design expertise alongside Tesla’s AI and manufacturing infrastructure. The 14A node is a critical component for producing the high-performance AI chips the project requires.
By utilizing this advanced technology node, Tesla aims to optimize performance while reducing costs and supply chain dependencies associated with third-party manufacturers. Musk’s comments suggest that while the technology and manufacturing partnership are being established now, full production viability will come as Terafab reaches greater operational scale, positioning it as a multi-year initiative.
The project could significantly impact Tesla’s computational infrastructure for AI applications across autonomous driving, energy management, and manufacturing operations. The collaboration reflects a broader trend of major technology companies investing heavily in vertical integration and semiconductor manufacturing to secure supply chains and maintain technological independence.