SpaceX and Tesla to Establish Manufacturing Plants in Austin
SpaceX and Tesla are set to construct two state-of-the-art chip plants at a large site in Austin, Texas—one to energize vehicles and humanoid robots, and the other aimed at supporting artificial intelligence data centers in space, according to CEO Elon Musk.
The remarks came after Musk's declaration the previous day regarding intentions to create "Terafab," a cutting-edge AI chip facility in Austin.
"Musk stated in a post on X that Terafab will essentially consist of two fabs, with each producing a single chip design."
Musk had stated earlier that Tesla would require its own AI chip factory, but SpaceX's involvement had not been revealed. SpaceX, gearing up for an IPO that may appraise the company at approximately $1.75 trillion, has recently merged with Musk's social media and AI venture xAI.
"We either create the Terafab or we lack the chips," Musk stated during a presentation at an Austin facility on Saturday, noting that present global chip production would only satisfy a small portion of his companies' future requirements.
Musk did not provide a schedule for the upcoming project. Musk has a history of declaring very ambitious projects, although many have encountered setbacks or been abandoned.
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Musk expressed appreciation for current chip suppliers, citing Samsung, TSMC, and Micron, but mentioned that his companies' demand would eventually surpass total global chip production.
Musk stated that Terafab will ultimately generate one terawatt of computing power annually, in contrast to the approximately half a terawatt currently produced throughout the United States.
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He mentioned that one chip would be utilized in Tesla cars and Optimus humanoid robots, whereas the other would be created for space AI satellites.
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"We require a powerful chip made for space that considers the more extreme conditions," Musk stated, noting it must function at elevated temperatures.