SpaceX Proposes $55 Billion Terafab AI Chip Complex in Texas

Overview

• SpaceX outlined Terafab with two Austin sites to make Tesla vehicle and Optimus robot chips plus parts for orbital AI data centers.
• The proposal sets an initial $55 billion spend with a path that could reach $119 billion if later phases move ahead.
• The target is 1 terawatt of computing power each year, a scale Bernstein estimated could cost $5 trillion to $13 trillion annually.
• Terafab would bring chip design and manufacturing under one roof to secure a dedicated pipeline for Tesla, xAI and space uses.
• Local officials in Grimes County plan a June review of a property tax abatement tied to the project, and SpaceX cautioned that timelines and targets are not guaranteed.