Elon Musk Unveils Moonshot Terafab Project: 4 Key Takeaways
The project will be a joint venture between Tesla and SpaceX to make in-house chips. Musk said the goal is to produce a terawatt, or one million megawatts, of compute a year.
The project will be a joint venture between Tesla and SpaceX to make in-house chips. Musk said the goal is to produce a terawatt, or one million megawatts, of compute a year.
Elon Musk has put Tesla, SpaceX, and xAI in harness to build a chip fabrication outfit called "Terafab" capable of producing a terawatt's worth of computing power each year, then send most of it into space.
Elon Musk officially launched TERAFAB on March 21, 2026 — a $25 billion joint chip fabrication venture between Tesla, SpaceX, and xAI targeting one terawatt of AI compute annually.
Tesla and SpaceX have unveiled "Terafab," a joint $25 billion chip fabrication facility in Austin, Texas, that Elon Musk claims will produce 1 terawatt of computing power annually.
Elon Musk announced late Saturday inside the Seaholm Power Plant that his much-anticipated $20 billion Terafab will be built in Austin.
Musk said his Terafab project — a grand plan to eventually manufacture his own chips for robotics, artificial intelligence and space data centers — will be built in Austin.
Elon Musk said his Terafab project will be built in Austin and jointly run by Tesla and SpaceX.