Elon Musk Thanks Micron for Allocating Memory Capacity to Tesla
During Tesla's Q2 2026 earnings call, CEO Elon Musk expressed gratitude to Micron for securing and allocating a significant amount of memory capacity to Tesla under reasonable terms despite high market prices. Securing memory supply is critical for Tesla as it faces battery and electronic component constraints while scaling up its AI hardware, including the Optimus robot and upcoming AI4 and AI5 chips. Tesla is actively pursuing higher integration to bypass supply bottlenecks, which includes advancing its multi-billion-dollar Terafab project in Texas and preparing the upgraded AI4 and AI5 chips for production by mid-2027.
## BACKGROUND
Tesla's self-designed AI chips, such as the upcoming AI5, serve as the computing brains for its autonomous driving systems and Optimus humanoid robots. To secure its chip supply chain, Elon Musk has envisioned the 'Terafab' project, a massive semiconductor fabrication facility in Texas designed to manufacture custom chips for Tesla, SpaceX, and xAI.