SpaceX Plans $119B 'Terafab' Chip Factory in Texas
Elon Musk's SpaceX, which also includes his AI venture xAI, is exploring the possibility of establishing a semiconductor manufacturing plant in Grimes County, Texas. This initiative, known as 'Terafab,' could start with an investment of $55 billion and reach a total of $119 billion. It is envisioned as a multi-phase facility for advanced computing and vertically integrated semiconductor production. Musk has previously discussed collaborations with Tesla and Intel to create chips for various applications, including AI servers and autonomous vehicles. The goal is to generate 1 terawatt of power annually through chip production. Musk indicated that Grimes County is among several potential sites, as he aims to meet the computing demands for xAI’s Grok AI models. The combined valuation of SpaceX and xAI is $1.25 trillion, with plans for a public offering in June.
Key facts
- SpaceX may spend up to $119 billion on a chip factory in Grimes County, Texas.
- Initial investment is $55 billion.
- The project is called 'Terafab' and is a vertically integrated semiconductor facility.
- Tesla and Intel are involved in the effort.
- Chips will be used for AI servers, satellites, space data center, autonomous vehicles, and robots.
- The facility aims to produce 1 terawatt of power per year in chips.
- Grimes County is one of several locations under consideration.
- The combined xAI and SpaceX entity is valued at $1.25 trillion and expected to go public in June.
Entities
Institutions
- SpaceX
- xAI
- Tesla
- Intel
Locations
- Grimes County
- Texas
- United States