Musk Puts Dates on Terafab's First Chip Fab

Kind: captions Language: en Regarding the terra fab, uh we the Austin based uh research fab is progressing quickly. Uh we'll begin commissioning machinery in the first half next year. And um hopefully if things go well, we'll make our first uh test chip just to see if we can make any chip at all around May or June. >> That was Elon Musk on Tesla's third quarter earnings call. In July, Tesla called this chip fab still in its early stages. Now it comes with dates. >> We're our aspiration is to be making uh some kind of useful chip at volume around Q3 of 20 of 2028. >> Yeah. And I'll I'll just add you know the first uh set of equipment for the for the fab which Tesla is building, we've actually already placed most of the orders. What will it cost? Musk's answer. >> It's it's it's certainly in the tens of billions um for for Terraab and then it will be it'll be a lot more it'll probably be north of 100 billion uh long term. >> He added that Tesla and SpaceX still have to work out who pays for what. So why does Tesla want its own fab at all? >> So it's it's a an an epic project. uh and this will be an an incredibly important asset if not a necessary asset in order to scale especially Optimus as we can address bottlenecks uh in semiconductors whether it's memory packaging logic or or whatever the case may be chips are one side the other is training the software for Tesla's cars and robots Tesla measures that computing by power its two training clusters in Texas are listed at more than 225 megawatt the plan is 400 megawatt by the end of the year. Tesla now calls this work SI for super intelligence. Next AI5, Tesla's next AI chip. Musk. >> Uh there's there's another milestone that's I think important we want to get to, which is to integrate our the the Tesla AI5 uh chip into Optimus, which if if things go according to plan will be in approximately uh April of next year and like it's an order of magnitude more compute AI5 versus AI4. Regarding Optimus, uh we we've started like what I'd call early production uh on our high volume line in Fremont. >> The bots coming off that line are Tesla's first production quality bots. Its update says Musk expects the open issues like reliability and how long a robot lasts to be solved around the end of next year. That's when he expects to start delivering Optimus to companies outside Tesla. and and I I remain convinced that Optimus will be the biggest product on Earth. >> On robo taxis, cyberc cab rides in Austin began on September 3rd. Tesla's update says >> uh the cyber club cyber cabab fleet in Austin uh for example has grown by a factor of 10 since uh launch about a month ago. >> Dallas is next starting next month, the company said. Then there's energy >> and energy demand is is very strong. We're actually almost almost sold out of all uh mega packs for 2027 and we're ramping production as quickly as possible to meet demand. >> The business is witnessing extreme demand from data centers. >> Tesla's update puts it plainly, energy storage is critical to data center uptime. So three dates to watch. machines in the research fab in the first half of next year. If things go well, a first test chip around May or June and useful chips at volume as an aspiration around the third quarter of 2028. Our full film on Terrafab is coming next. Subscribe so you don't miss it.