Tesla’s Custom AI Chip Quietly Builds the Foundation for Independence From Nvidia

The dedicated Terafab facility carries phase-one costs of $55 billion and total project costs approaching $119 billion — larger than the entire US CHIPS Act — and will be split across Tesla and SpaceX balance sheets ahead of SpaceX’s planned public listing. SpaceX regulatory filings seek approval for up to one million satellites configured as orbital data centers that run on uninterrupted solar power, with internal projections placing the total addressable market for space-based AI infrastructur

Samsung and TSMC might be in SpaceX xAI satellite chip project - Sammy Fans

SpaceX’s xAI is rapidly advancing AI-powered in-orbit satellite development, with Samsung Electronics and TSMC reportedly involved in early-stage small-volume production of AI space computing chips. Elon Musk’s SpaceX isn’t just launching rockets anymore; the company is building Terafab, its own AI space computing chip facility, and the ambition behind it is real.

SpaceX’s AI Satellites: Revolution in AI Compute

Terafab is the joint semiconductor fabrication initiative by Tesla, SpaceX (post-xAI), and Intel, announced March 21, 2026. It aims to be the “most epic chip-building effort ever,” vertically integrating logic, memory, and advanced packaging ...

SpaceX set for Nasdaq debut as Elon Musk-backed company prepares for public trading

The company's AI division, xAI, launched in 2023 and later became part of SpaceX in early 2026. Since then, it has significantly expanded its computing infrastructure, including the development of large-scale computing clusters known as COLOSSUS and COLOSSUS II. SpaceX is also pursuing the Terafab initiative, a semiconductor manufacturing project reportedly being developed in collaboration with Tesla and Intel...

SpaceX’s Gwynne Shotwell had IPO doubts for years, now she has a message for investors

With xAI comes the Grok large language model and X, formerly known as Twitter. And to entice developers, the company struck a deal with AI coding upstart Cursor, with an option to buy the business for $60 billion in stock. Then there's the Terafab semiconductor fab and computing mega project that it's jointly developing with Tesla.

SpaceX plans $55B Texas chip plant with Intel partnership

Elon Musk’s SpaceX, with Tesla and xAI, has filed plans for a $55 billion semiconductor manufacturing complex in Grimes County, Texas, potentially expanding to $119 billion. The Terafab project, with Intel as a strategic partner, aims to secure ...

Terafab Ai Chip Factory

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Google, Nvidia eye Intel as backup chipmaker, report says

The Information’s report also follows comments by Tesla CEO Elon Musk in April that the electric vehicle maker plans to use Intel’s next-generation 14A manufacturing process to make chips at its Terafab project, an advanced AI chip complex Musk has envisioned in Austin, Texas.

Tesla and SpaceX merger officially announced by...? Predi... 2026 | Polymarket

The companies already share deep operational ties, including SpaceX’s $697 million in Tesla Megapack purchases and joint planning for the Terafab semiconductor facility to support AI infrastructure. With SpaceX’s anticipated June 2026 listing expected to value it near $1.75 trillion, analysts such as Wedbush’s Dan Ives see 80%+ odds of a post-IPO merger in 2027 driven by AI synergies and Musk’s control.