Elon Musk says building his own 'TeraFab' chip fab may be the only answer to Tesla's colossal AI semiconductor demand — Nvidia CEO Jensen Huang warns against 'extremely hard' challenge

Elon Musk is considering outsourcing Tesla's chip production to Intel Foundry or establishing its own chip production operation, potentially building a 'TeraFab' facility. Nvidia CEO Jensen Huang warns that building advanced chip manufacturing is extremely challenging. Tesla, needing high-performance processors for AI, plans to double-source chips from TSMC and Samsung, and may explore Intel despite lacking automotive-grade technologies. Musk believes Tesla may need to become an integrated device manufacturer to meet long-term AI processor demands. Developing a new chip fabrication process is complex and costly, with Musk considering a massive chip fab to meet volume needs.