Elon Musk is moving forward with ambitious plans in the world of artificial intelligence. SpaceX will invest at least $55 billion in building a chip plant called Terafab
in Texas.
According to documents presented at a public hearing in Grimes County, the company is seeking tax benefits for this megaproject. The initial investment is worth millions, but if additional phases are completed, the total cost could climb to $119 billion
.
The initial announcement of the project was made in March, with very high goals. The plant would seek to generate chips capable of supporting up to 200 gigawatts per year of computing power on Earth and up to one terawatt in
space.
This initiative is part of a larger strategy of SpaceX and Tesla in the field of AI.
Collaboration between companies and key partners

The factory will be jointly operated by SpaceX and Tesla, and the chips produced will be used for applications of artificial intelligence, robotics and space-based data centers. Musk had already mentioned these intentions before
.
In addition, the company is expanding its presence in terrestrial data centers. The Colossus currently operates in Memphis, Tennessee, which recently signed an agreement to empower Anthropic's AI models
.
Intel joined the project last month and will provide support in the design, manufacture and packaging of high-performance chips. The US company highlighted that this collaboration will accelerate Terafab's goal of achieving 1 TW per year of computing capacity, key to future
advances in AI and robotics.
SpaceX's move toward self-manufacturing chips responds to the growing demand for specialized hardware to train and run increasingly powerful artificial intelligence systems. In a context where access to advanced chips is a bottleneck for many technology companies, having in-house production represents an important strategic advantage.
Implications for the future of AI and space

With this plant, Musk seeks not only to meet the internal needs of his companies, but also to position himself as a relevant player in the supply chain of semiconductors for AI. The focus on large scale production aims to eliminate external dependencies in a market dominated by few manufacturers
.
The location in Texas reinforces SpaceX's commitment to the state, where it already has several operations. Requests for tax exemptions are common in projects of this magnitude, since they represent a significant investment in infrastructure and employment generation in the
area.
While the precise technical details and timelines are still being defined, the announcement alone raises expectations about how it will impact the competition for leadership in artificial intelligence. The combination of SpaceX capabilities in space, Tesla in robotics and now manufacturing its own chips draws an integrated high-tech ecosystem
.
Industry experts are watching these developments closely, as a greater supply of specialized chips could lower costs and accelerate innovation across the field of AI. For now, SpaceX is moving forward with the necessary administrative procedures to implement this ambitious
Terafab.