Elon Musk Reveals Bold Chip Plan for Tesla and SpaceX to Power Future AI Growth

Elon Musk has unveiled ambitious plans to build a massive chip manufacturing facility through a collaboration between Tesla and SpaceX.

The proposed facility, called Terafab, is expected to be located near Tesla’s headquarters in Austin, Texas. Musk says the move is driven by a growing shortage of advanced chips needed for artificial intelligence and robotics.

According to him, the goal is to produce chips capable of supporting 100 to 200 gigawatts of computing power annually on Earth, with plans to extend up to a terawatt in space.

While the vision is massive, no clear timeline has been provided, and questions remain given Musk’s lack of direct experience in semiconductor manufacturing and his track record of setting highly ambitious targets.