Tesla Announces Terafab: A $20–25B Chip Megaproject for AI and Space Computing
Musk announced a joint Tesla/SpaceX/xAI venture to build Terafab in Travis County, Texas — a $20–25B chip fab targeting 2nm production at 70% of TSMC's global output. The plan allocates 80% of chips to orbital AI satellites and 20% to terrestrial use (Optimus robots, vehicles, Grok). No timeline was given, but the scale signals a fundamental shift in who controls AI compute infrastructure.