Big Tech software era is over, says top investor James Anderson
Elon Musk in March launched his ambitious “TeraFab” project to build a chip manufacturing plant in Texas that can supply SpaceX and Tesla.
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Elon Musk in March launched his ambitious “TeraFab” project to build a chip manufacturing plant in Texas that can supply SpaceX and Tesla.
Buried in the filing is a detail that didn’t make most headlines: SpaceX and Tesla have formed a joint venture called Terafab to build a consolidated semiconductor production facility that will produce chips for Tesla’s autonomous driving systems, Optimus robots, and SpaceX’s orbital data centers.
A modern AI model carries about 400 billion "weights"—the patterns it learned during training. Stored in standard format, that's 800 gigabytes.
It also folded in AI business xAI in a mostly stock-based deal in February. The company has also partnered with Tesla on a chip-making project called Terafab. The combined story – powerful satellite internet business paired with big AI ambitions – makes this a rare and attractive story for investors.
Terafab aims to further expand its vertical integration in chip design, manufacturing, and packaging to alleviate potential future chip shortages at SpaceX, especially when it develops orbital AI on a large scale and designs chips optimized ...
Terafab — the chip manufacturing joint venture with Tesla and Intel that is supposed to make SpaceX vertically integrated all the way down to silicon — is presented in the prospectus as a strategic pillar.
Alongside terrestrial AI clusters like COLOSSUS, SpaceX’s Terafab initiative with Tesla and Intel targets one terawatt of compute hardware production annually. New Delhi: SpaceX is laying out a sweeping vision that combines artificial intelligence infrastructure in space with the next phase of Starlink’s global internet expansion. Plans outlined in the company’s IPO filing suggest that orbital computing and satellite connectivity will serve as the building blocks for the AI future of the next ge
To feed those data centres, SpaceX is collaborating with Tesla on a joint advanced chip manufacturing facility, referred to internally as the Terafab.
Terafab would manufacture chips for SpaceX, Tesla and xAI. Musk said in a recent post on X that xAI "will be dissolved as a separate company" and will be called SpaceXAI. About 80% of the chip production would be allocated for powering orbital ...
The Austin-based company also operates ... satellites. In recent months, Musk has shifted SpaceX's focus toward building solar-powered orbital data centers, which the billionaire has said will be necessary to train powerful AI models and eventually turn humanity into a multi-planetary civilization. The company is also collaborating with Tesla to build a sprawling "Terafab" that would manufacture specialist chips for space-based ...
These costs will likely be eclipsed by two future SpaceX-Tesla projects: building Terafab, a chip-manufacturing facility, and Macrohard, an AI platform the two companies are developing that will use autonomous agents to augment the work of humans.
On the chip front, SpaceX also has ambitions to build its own massive fab called Terafab, a joint venture with Tesla (TSLA +1.94%) in which both companies will design and manufacture their own chips.
Market News · 21 May 2026· · 24/7 Wall Street·View Source· · Bullish · SpaceX's pre-IPO filing disclosed two early-stage projects with Tesla: Macrohard, an AI software platform, and Terafab, a chip fabrication initiative.
ASML CEO: Has talked with Elon Musk about planned Terafab project, saying Musk is 'very serious' ...
Intel Foundry has already secured ... technology at its TeraFab, which is set to be a critical component of its compute requirements. The supply chain points out that AI training chips, due to their advanced manufacturing processes and highly complex packaging, have significantly ...
Terafab vision: Tesla’s rumored Terafab initiative—a potential in-house or joint-venture packaging facility aimed at controlling advanced integration steps and expediting prototype cycles.
“SpaceX is going to take care of like the initial phase of the scaled up Terafab... Any kind of intercompany thing has to be approved by both the SpaceX and Tesla board of directors. It’s got to go through a conflict resolution.
Readers recall the Kent State tragedy, praise the Apollo mission, ask who is approving Terafab and advocate for gun control.
Tech Industry Why TSMC grew four times faster than its foundry rivals in 2025 · Tech Industry Elon Musk unveils $20 billion ‘TeraFab’ chip project to make chips, memory, and package processors all under one roof
One key question was who the semiconductor technology partner would be, and that turns out to be Intel. The choice was limited, with TSMC in Taiwan, Samsung, nominally in South Korea as the only other technology suppliers able to provide the ...