SpaceX and Tesla announced a $16.8 billion joint investment to build an advanced AI chip manufacturing complex in Grimes County, Texas. The facility, named Terafab, received confirmation from Texas Governor Greg Abbott. The project includes a $30 million grant from the Texas Enterprise Fund and significant tax abatements.
This strategic vertical integration aims to meet future computing demands exceeding one terawatt for both companies. Custom chips will power Tesla’s autonomous vehicles and robotics initiatives. The facility will also supply SpaceX’s space-based data networks to secure a critical part of their supply chain.