Elon Musk Unveils Terafab AI Chip Project Using Intel’s 14A Process

Key Facts

1Tesla plans to use Intel's next-generation 14A manufacturing process to produce chips at its Terafab project.

2The Terafab project is an advanced artificial-intelligence chip complex located in Texas.

Elon Musk has unveiled ambitious plans for Tesla's Terafab project in Texas, utilizing Intel's next-generation 14A process for AI chip production. To support these expanding ambitions in AI and robotics, Tesla has significantly increased its capital expenditure plan to $25 billion. Musk confirmed via X that production of the autonomous Cybercab has officially commenced at Gigafactory Texas, featuring a radical design without a steering wheel or pedals. This transition to large-scale manufacturing and infrastructure investment underscores Tesla's commitment to vertical integration and proprietary AI hardware. For Intel, securing Tesla as a high-profile foundry client remains a major milestone for its manufacturing division. This development highlights Tesla's strategy to secure its supply chain while accelerating the commercial deployment of self-driving technology.

5 months ago

Version History

Version 55 months ago

What changed: Tesla has increased its capital expenditure plan to $25 billion to support AI and robotics infrastructure.

Version 45 months ago

What changed: Visual confirmation of the Cybercab's design (no steering wheel/pedals) and video evidence of it driving autonomously off the assembly line.

Version 35 months ago

What changed: Confirmed the start of Cybercab production via X and contextualized the move against slowing global EV demand.

Version 25 months ago

What changed: Confirmed the transition to mass production for the Cybercab and specified Gigafactory Texas as the production site.

Version 15 months ago

What changed: Updated the story to include Elon Musk's announcement that production of the autonomous Cybercab has officially commenced.