The rest of the valuation is a wager on terminal value, on a future still over the horizon. Server farms in orbit carried up by a Starship that is running behind. A chip plant Musk has nicknamed the Terafab and has not yet been built. Settlements on Mars.
ASML Holding NV CEO Christophe Fouquet says the demand for AI infrastructure is still "enormous" and discusses the potential for data centers in space. Speaking during an interview on Bloomberg Television, Fouquet also says the company has to make sure it doesn’t experience supply constraints when servicing new projects such as on Elon Musk’s Terafab.
In March 2026, Tesla announced plans to collaborate with SpaceX and xAI (now part of SpaceX) to build TeraFab, billed as "the largest chip manufacturing facility ever." Intel (INTC +4.66%) joined the team in April.
The comments followed Musk's announcement a day earlier of plans to build "Terafab," an advanced AI chip complex in Austin. Led by Benchmark and EQT Ventures, the fundraise underscores surging investor appetite for space infrastructure bets as massive AI computing requirements strain terrestrial energy grids and data center capacity, even as space-based systems offer access to near-continuous solar power.
When SpaceX absorbed xAI a month later, that stake converted into nearly 19 million SpaceX shares, worth about $2.6 billion at the IPO price. And the two are also jointly building a chip-making plant in Austin, known as Terafab, meant to supply ...
Diamandis was even more certain, stating he believes the probability of Tesla merging into SpaceX is 100%, citing resource sharing and synergies between the two on Gigafactories and the TeraFab chip program as making a merger highly logical. On the hardware timeline, Shotwell expects SpaceX to launch its first dedicated AI satellite, "AI1," by the end of 2027. Before that, the company will deploy computing power on some Starlink broadband satellites for "canary" pilot tests t
The applications were filed under Terafab AI, LLC with both Anderson-Shiro and Iola, with four phases listed for each district. In Anderson-Shiro, the filings list about $10.37 billion in eligible investment for Phase 1, followed by $23.84 billion for each of phases 2 through 4, and 617 permanent jobs.
A spokesperson for the Terafab indicated that the project is intended to manufacture semiconductors which will support advanced AI computing, space-based computing systems and orbital data centers, satellite infrastructure and next-generation aerospace technologies.
SpaceX bought xAI in February, folding in the Colossus data centers and the Grok models, so it has frontier AI in-house. It is building chip packaging at its Bastrop, Texas campus this year and has floated a 55 billion dollar Terafab chip plant ...
And between Tesla's competitive position potentially eroding and SpaceX needing plenty of cash to fund its growth ambitions, a merger between the two companies may indeed make a lot of sense, especially given that the two businesses are working on Terafab, a giant chip factory, and other initiatives together.
The week’s most powerful catalyst came from Elon Musk, who appeared by video at ASML’s own technology conference to pitch the Terafab project, a vertically integrated semiconductor venture involving Tesla, SpaceX and xAI, with Intel contributing its 14A process technology. A Texas?based fab is slated to start with $55 billion in investment and could eventually absorb as much as $119 billion. Musk’s message was unequivocal: ASML is the indispensable supplier, because it is the world’s sole produc
“This represents MediaTek’s strategic window,” Kuo stated. He emphasized that sustained success hinges on MediaTek capitalizing on Taiwan’s robust hardware manufacturing ecosystem and its collaboration with Terafab, while acknowledging the initiative “currently lacks definitive timeline clarity.”
Musk is planning a massive chip fabrication facility in Texas called Terafab, with an expected buildout cost of $55 billion to $119 billion. The project is designed to produce chips for Tesla and SpaceX, which now owns xAI.
Chips are also a key AI industry ... on space data centers: "Semiconductor production ... is a 'universal' constraint on all chip deployment, whether deployed on Earth or in Space ... Elon Musk is clearly well aware of this constraint, and it is the impetus behind his Terafab ...
In March 2026 Tesla unveiled the Terafab project: a $25 billion chip factory in Austin, developed jointly with SpaceX and Intel. The goal is outright independence from external semiconductor suppliers.
The centrepiece of Tesla’s hardware push is the Terafab project in Austin, Texas. Announced in March 2026, the €25 billion semiconductor plant is a joint venture with SpaceX and Intel.
"Rubin ramp at xAI is perhaps the reason for Google and Anthropic approaching xAI with large multi-year contracts," it noted, pointing to a combined $75 billion in agreements between xAI and the two companies. On the semiconductor equipment side, Lynx sees Lam Research, Applied Materials, ASML, and KLA as key beneficiaries of Terafab’s buildout, with wafer fabrication equipment demand of roughly $25 to $30 billion expected over 2027-28.
Not to mention all the blue-collar and middle-management jobs in around the SpaceX Starbase outside Brownsville, Texas, his Tesla gigafactory in Bastrop, Texas and his Terafab plant near College Station and other companies all together employing around 150,00 people (plus all the people selling food, car, clothing etcetera to those workers).