Elon Musk’s Terafab chip factory in Texas could cost up to $119 billion, filing shows.
Musk, who’s also CEO of Tesla, is aiming for Terafab to be the “most epic chip-building effort ever — combining logic, memory and advanced packaging under one roof,” according to a post on X last month from SpaceX, which now owns artificial intelligence company xAI. Musk officially launched the project in March.
The chip complex outside Austin would be designed to manufacture chips for SpaceX, xAI and Tesla, and would be jointly built by those companies. Musk said in a post on X that xAI “will be dissolved as a separate company” and will be called SpaceXAI.
In April, Intel announced it will be joining the Terafab project to help “design, fabricate, and package ultra-high-performance chips at scale.” It’s the first major outside commitment for the capital-intensive foundry side of Intel’s business, which to date has only manufactured chips for its own products.
During Tesla’s first-quarter earnings call last month, Musk said Tesla plans to use Intel’s forthcoming 14A process to produce chips at the facility. Intel’s stock popped on the news and had its best month ever in April, more than doubling in value.