Musk Announces a $20B Tesla and SpaceX Chip Factory in Austin
Elon Musk made a splash on Saturday, with the unveiling of Terafab, a joint chip manufacturing factory located in Austin, Texas and owned by Tesla, SpaceX, and xAI. It has, in fact, two factories — one for the chip on a Tesla vehicle and Optimus robot and another for AI satellites in space. Terafab is driving toward 2-nanometer chip tech and plans to manufacture one terawatt of compute per year. The project is expected to cost between $20 and $25 billion. No confirmation has been given on a construction timeline. Musk said existing chip suppliers are unable to scale fast enough to meet demand for all of his companies.