March 14 (Reuters) - Tesla CEO Elon Musk said

on Saturday that the company's Terafab project to make

artificial intelligence chips will launch in seven days.

Musk had said last year that Tesla probably will have to

build "a gigantic chip fab" to make artificial intelligence

chips.

Tesla is designing its fifth-generation AI chip to power its

autonomous ambitions, and Musk at the company's annual meeting

last year laid out potential manufacturing plans.

Musk had said at the time that the EV maker could work with

Intel ( INTC ) and said, "You know, maybe we'll, we'll do

something with Intel ( INTC )."

"We haven't signed any deal, but it's probably worth having

discussions with Intel ( INTC )," he had said.

Tesla did not immediately respond to a Reuters request

seeking more details about the project.

Musk has teased the AI5 chip before and reiterated that

Tesla was also partnering with Taiwan's TSMC and South

Korea's Samsung. The AI chips power Tesla's

autonomous driving systems, including the Full Self-Driving

software.

"Even when we extrapolate the best-case scenario for chip

production from our suppliers, it's still not enough," Musk said

last year, at Tesla's AGM.

"So I think we may have to do a Tesla terafab. It's like

giga but way bigger. I can't see any other way to get to the

volume of chips that we're looking for. So I think we're

probably going to have to build a gigantic chip fab. It's got to

be done," he said.