According to reports from The New York Times and CNBC, SpaceX is planning to invest at least $55 billion in Austin, Texas, to build an AI chip manufacturing plant named "Terafab."

This information comes from a public hearing notice in Grimes County, Texas, which mainly aims to apply for tax incentives for the project. SpaceX said that if more construction phases are added in the future, the total investment could reach up to $119 billion.

Musk SpaceX, rockets, Starship, space

When Elon Musk first announced the project in March, he shared his ambitious plan, expecting the factory to produce enough chips annually to support up to 200 gigawatts of ground computing power, as well as 1 terawatt of computing power in space. At the same time, SpaceX is also working to expand its data center business on Earth. The company currently operates a data center called "Colossus" in Memphis, Tennessee, and has reached an agreement with the AI company Anthropic to provide computing support for its AI models.

The chip factory located in Texas will be jointly operated by SpaceX and Tesla, and the chips produced will serve both companies. Musk said these chips will be used for artificial intelligence, robotics, and space data centers. Last month, Intel announced it would help design and build Terafab, stating, "Our capabilities in designing, manufacturing, and packaging high-performance chips will help accelerate Terafab's goal of producing 1 terawatt of computing power per year, driving advancements in future AI and robotics technologies."

Key Points:

- 🚀 SpaceX plans to invest $55 billion in Texas to build an AI chip factory, which could reach $119 billion in the future.

- 💻 The factory is expected to produce chips annually that can support 200 gigawatts of ground computing and 1 terawatt of space computing.

- 🤝 Intel will assist in designing and building the factory to advance AI and robotics technologies.