SpaceX Files Plans For A $119 Billion Chip Factory To Feed Musk's Four Other Companies — Aninews ep 14
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For most of the history of the chip industry, the largest factories cost tens of billions of dollars to build. In a federal filing this month, SpaceX disclosed plans for one that could cost as much as a hundred and nineteen billion. The factory is called Terafab. It is being built outside Austin, in the Texas desert. The project is jointly developed by SpaceX, Tesla, xAI, and Intel. By the project's own description, the goal is the most epic chip-building effort ever attempted. The plant is engineered to produce more than one terawatt of artificial intelligence compute capacity per year. A terawatt is one trillion watts. The chips Terafab is designed to produce will go to four customers. SpaceX rockets. Tesla self-driving cars. Tesla humanoid robots. And xAI's data centers. All four are owned by the man at the center of the project. Vertical integration, at this scale, is unusual. Vertical integration where every customer is also the supplier is something else. Terafab breaks ground this year. The forge, in the end, mostly feeds itself.