Tesla Prepares to Manufacture AI Chips for Use in Autonomous Vehicles!
Tesla, one of the leading electric vehicle (EV) companies, is making an entry into the artificial intelligence (AI) chip segment. Billionaire Elon Musk’s company is set to launch the “Terafab” project for this purpose in the near future. Last year, Musk stated that Tesla would need to establish a dedicated unit to manufacture AI chips.
Holding a significant share of the international EV market, the company is currently designing an AI chip to realize its vision for autonomous vehicles. Musk had indicated that Tesla might collaborate with Intel on this initiative. He remarked, “We haven’t signed any deal yet, but we could certainly engage in discussions with Intel.” Prior to this, Musk had also released a teaser for the “AI5” chip. He mentioned that potential tie-ups for this project could be formed with Taiwan’s TSMC and South Korea’s Samsung. TSMC holds a dominant position in the semiconductor market, supplying semiconductors to numerous smartphone and automobile manufacturers.
Tesla did not respond to inquiries sent by Reuters regarding this matter. AI chips are utilized in Tesla’s autonomous driving systems, including its self-driving software. Last year, Musk stated, “We will have to launch a Tesla Terafab unit. This unit could be quite massive. I don’t see any other way to achieve the sheer volume of chips we require.” In the international EV market, Tesla is facing stiff competition from China’s BYD.
In India, Tesla commenced sales of its Model Y last July. The company may also offer autonomous driving features within the country; however, customers would be required to pay an additional fee for this service. Tesla’s sales in India have remained significantly lower than projected. The company’s Model Y is available in two variants: Rear-Wheel Drive and Long-Range Rear-Wheel Drive. The starting price of this electric SUV is ₹59.89 lakh. The price of its Long-Range Rear-Wheel Drive variant is ₹67.89 lakh. In the international market, the All-Wheel Drive (AWD) variant of the Model Y is also available. The Rear-Wheel Drive variant of the Model Y offers a range of approximately 500 kilometers on a single charge. It can accelerate from 0 to 100 km/h in 5.9 seconds. The range of its Long-Range Rear-Wheel Drive variant is slightly over 620 kilometers.
