The benefit is a speedy design loop. “I can’t emphasize sufficient the significance of having the ability to make a chip, check it, after which change the design, do one other one, and have that in a single constructing,” he stated, including that this strategy might make their chip enchancment cycle “an order of magnitude higher than anything on the earth.”

What chips will the corporate really make?

TeraFab will produce two varieties of chips. The primary is optimized for edge inference, designed for Tesla vehicles and Optimus humanoid robots. On the size of demand for the primary chip alone, Musk was blunt and stated, “I anticipate humanoid robotic manufacturing to be someplace between a billion and 10 billion models a yr. In order that’s loads.”

The second is hardened for the house surroundings, constructed to deal with the radiation and high-energy ions that will destroy standard chips. Musk additionally confirmed that Tesla, SpaceX, and xAI will proceed shopping for chips from TSMC, Samsung, and Micron, and stated he’d like them to broaden as quick as they presumably can. 

Cool thought, however what’s the timeline??

Truthfully, what Musk confirmed within the livestream is genuinely thrilling. The concept of pushing the boundaries of chip physics, making an attempt unconventional designs, and iterating on them sooner than anybody else on the earth is the form of ambition that might change issues. 

That stated, no timeline was given for when TeraFab will start producing chips. And on condition that Tesla announced the Roadster over a decade in the past and it nonetheless hasn’t shipped, I’ll reserve my pleasure till the primary chip rolls off the road.