Tesla and SpaceX will invest $16.8B to start building ‘Terafab’ chip factory in Texas
Tesla and SpaceX have announced a $16.8 billion joint investment to build 'Terafab,' a massive semiconductor manufacturing facility in Texas. The project aims to address the extreme computing power requirements for future AI, robotics, and autonomous vehicle technologies.
Why it matters
This massive infrastructure project signals a major shift toward vertical integration for Musk's companies to secure their own supply chain for AI development.
Tesla and SpaceX said Thursday that “Terafab,” the advanced chip factory they are jointly developing, will be built in Grimes County, Texas, outside Houston, and that they will make an initial investment of $16.8 billion in the project.
The factory will be “the largest and most valuable building on Earth by far,” Elon Musk, CEO of both companies, wrote in a post on Thursday. More than 100 million square feet of manufacturing space is planned for the facility, according to SpaceX.
The companies say the facility will employ at least 3,000 people from Grimes and nearby Brazos County.
“The facility will be an advanced semiconductor fab that will bridge the divide between current global chip supply and the compute demand of the future,” a post on SpaceX’s website reads.
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