Musk thanks Micron for chips, and builds a $55bn fab to replace it
Memory chips are the oil of the AI boom, and right now they are hard to get. So when Elon Musk used Tesla’s quarterly call to publicly thank Micron, it was worth noticing. Suppliers rarely get shout-outs. Scarce ones do.
Micron recently gave Tesla a “significant allocation” of memory on “reasonable terms,” Musk said, according to Bloomberg. That matters, because memory is in short supply and prices are high. The global build-out of AI has soaked up chips and left other industries scrambling.
The thank-you, though, sat oddly next to Musk’s longer game. He is quietly building the capacity to not need Micron at all.
Enter Terafab
The project is called Terafab, a joint effort between Tesla and SpaceXto make computing and memory chips at, in Musk’s words, unprecedented scale. A research fab is going up at Giga Texas, a roughly $3bn start able to turn...
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