SpaceX, Tesla to Spend $16.8B on Terafab Chip Factory in Texas

SpaceX and Tesla will invest $16.8 billion to build Terafab, a massive semiconductor factory in Texas, to meet their combined chip demand exceeding 1 terawatt of compute. The facility will develop advanced logic and memory chips for AI projects including Tesla's Optimus robots and SpaceX's space-based data centers. Intel is also involved, and the project aims to reduce reliance on current chip suppliers by vertically integrating Musk's AI operations.