Musk said Micron allocated a large number of memory chips to Tesla and the supply conditions were "very reasonable"
Elon Musk said, The allocation of "large quantities" of memory chips has helped the automaker meet demand for the increasingly scarce commodity. Musk said during Tesla's quarterly earnings call on Wednesday that despite the current tight supply and high prices of memory chips, Micron Technology's supply conditions to Tesla are very reasonable. Memory chips are used to help computers store and manage data. The rapid development of global artificial intelligence systems has driven demand for such chips. Supply shortages have also ensued and spread to other industries. Prices have also risen, exacerbating pressure on the manufacturing industry. In the long term, Musk is also promoting independent production of semiconductors. The billionaire launched an initiative called Terafab to produce computing and memory chips at an unprecedented scale. The plan is jointly promoted by Tesla and Space Exploration Technologies Corporation (SPCX), both of which have Musk as CEO. For now, Tesla still needs Micron Technology's products, but it doesn't have the purchasing power as much as some other customers. Data compiled by Bloomberg show that neither Tesla nor SpaceX is among the top ten customers of Micron, the largest U.S. memory chip maker. Representatives for Micron Technology did not respond to requests for comment.