Elon Musk claims his companies can produce chips better than anyone thanks to custom-built equipment. His Terafab project, shared by Tesla and SpaceX, aims to build a vertically integrated manufacturing campus in Texas. The project targets annual production of 1 terawatt of compute capacity through AI5 chips designed for AI inference. Musk claims these chips could deliver 2 to 3 times better performance-per-watt than Nvidia products at roughly 10% of their cost. Intel is officially partnered for technology support while TSMC discussions remain exploratory.
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