Elon Musk Floats ‘Terafab’ as Tesla’s Next Big AI Chip Bet

During Tesla's 2025 shareholder meeting, Elon Musk raised alarms about potential shortfalls in supplier output for AI chips, which are crucial for the company's future innovations. To address this challenge, he proposed the establishment of 'Terrafab', a massive chip fabrication facility designed to ensure a steady supply of AI chips for Tesla's needs. This move underscores Tesla's proactive approach to securing its technological advancements in artificial intelligence, reflecting the company's broader strategy to maintain a competitive edge in the rapidly evolving tech landscape.