Tesla and SpaceX's AI chip factory, “Terafab”, will be massive

Tesla and SpaceX’s AI chip factory, “Terafab”, will be massive: ✅ 100 million sq. ft. (9.29 million m²) ✅ 10× larger than Tesla’s Giga Texas ✅ Output of 1 TW of compute per year (roughly 2× current annual U.S. power consumption) https://t.co/qXeKoo5xl4

Where Will SpaceX Be in 100 Years?

Over the next century, SpaceX should get even more vertically integrated by producing its own AI chips through a venture it calls Terafab: a chip manufacturing initiative with a long-term goal of producing one terawatt of compute hardware each year.

See inside Tesla's new $62,000 six-seater Model Y L, which has been a huge hit in China and is now on sale in the US

Ex-Blue Origin workers say theirs are worthless.Exclusive: Elon Musk plans to pitch SpaceX's Terafab chip moonshot to employees at Europe's biggest tech companyThis tech exec sued Tesla over its Full Self-Driving promises — and wonExclusive: Stellantis CEO tells employees to channel Silicon Valley office culture as it prepares for 5-day RTOExclusive: The chip industry's most important company is cutting managers.

Grimes County residents weary of Terafab, data centers

NAVASOTA — Forget Big Brother, it’s Big Tech that is very much on the mind of Grimes County residents who are still seething over their elected officials approving tax abatements for the proposed SpaceX Terafab facility at Gibbons Creek Reservoir.

What documents filed with local school districts reveal about SpaceX’s Terafab project

They were submitted by TeraFab AI, LLC, a newly formed special-purpose entity created specifically for this project. The applications paint a picture of a project unlike anything Texas has seen before: $119 billion in total proposed investment across four phases · 22,000+ acres spanning two school districts · 4,234 direct jobs created across all eight applications ·

Introduction to Space Datacenters and Orbital Compute

During the March 2026 launch, Elon Musk framed Terafab as a 1 terawatt per year compute factory. Tesla, SpaceX, and xAI would build it together in Austin on a $20-25B budget, starting at 100K wafer starts per month and climbing toward 1M wafer starts per month (WSPM), roughly 70% of TSMC’s entire global output today.

Elon Musk Says He’s Building a Chip “2 to 3 Times” Better Than NVIDIA at 10% The Cost. Is He Bluffing?

Polymarket has no active markets on Tesla's chip milestones, and the Tesla-xAI merger market sits at 99% "No" probability by June 30, suggesting that traders aren't pricing near-term validation of Musk's integrated compute thesis. Investors can hold both ideas at once. NVIDIA's moat is enormous and self-reinforcing, while Tesla's AI5, AI6, and Terafab work could legitimately reshape inference economics if even half of Musk's claims land.

Elon Musk Could Get a $165 Billion Payday, But There's Just One Problem: Traders Say It's Never Going to Happen - 24/7 Wall St.

Elon Musk's Terafab may be the most ambitious undertaking Tesla or any of his companies has ever attempted. Capable Optimus… ... On March 21, 2026, at the Seaholm Power Plant in Austin, Elon Musk unveiled "the most epic chip-building exercise in… ... It’s big news as the buzz gets louder surrounding the most publicized IPO in years.

SpaceX vaporizes 260 Starlink satellites in six months using Earth's atmosphere — new environmental concerns emerge over burning 2,700-pound orbital data centers, FCC seeks to exempt satellites from regulations | Tom's Hardware

Space Google is reportedly in talks with SpaceX to launch its orbital data centers · Space NASA pushes Mars helicopter rotors past the speed of sound · Space SpaceX files for $55 billion semiconductor fab in rural Texas for Musk's Terafab