SpaceX and Tesla: $55 Billion for AI Chips in Texas

SpaceX, Elon Musk's company, has unveiled an ambitious project aimed at investing at least $55 billion in the construction of an AI chip factory, dubbed "Terafab," in Austin, Texas. This colossal project was revealed in a public meeting notice filed in Grimes County, Texas, where SpaceX is seeking tax incentives to support this initiative.

The initial investment could be significantly increased if additional phases of the project are implemented, potentially reaching $119 billion. During the initial announcement in March, Elon Musk shared bold goals for Terafab, aiming to produce enough chips to generate up to 200 gigawatts of computing power annually on Earth, and up to one terawatt in space.

SpaceX is not limited to chip manufacturing. The company is also looking to expand its terrestrial data centers. Currently, it operates a data center named "Colossus" in Memphis, Tennessee, which recently struck a deal to power the AI models of Anthropic.

The Terafab factory will be jointly managed by SpaceX and Tesla, producing chips intended for artificial intelligence, robotics, and space data centers. Last month, Intel announced its collaboration with SpaceX for the design and construction of Terafab. Intel emphasized that its ability to design, manufacture, and package ultra-high-performance chips at scale would help accelerate Terafab's goal of producing one terawatt per year of computing power, thereby supporting future advancements in AI and robotics.