The Terafab project, a collaboration involving Tesla, SpaceX, and xAI, has been unveiled by Elon Musk, aimed at establishing what he describes as the largest chip manufacturing facility in history. Set to begin in Austin, Texas, the initiative will have an estimated budget of at least $20 billion.
Musk, who serves as CEO of all three companies, shared details during a livestream on X, emphasizing the project's objective to generate a terawatt of computing power annually. This capacity is crucial to meet the escalating chip demands of his companies, which he noted current suppliers like Samsung and TSMC are unable to fulfill, providing only about two percent of the necessary resources.
The production will focus on two types of chips: one for terrestrial applications, including advancements in Full Self-Driving technology and robotics, and a more robust variant intended for use in space. Musk's vision aligns with his earlier plans for an "orbital data center," which includes launching a million satellites through SpaceX.