Musk Says Tesla, SpaceX, xAI Chip Project to Kick Off in Texas

 

Elon MuskPhotographer: Stefani Reynolds/Bloomberg

Takeaways by Bloomberg AI

  • Elon Musk said his Terafab project will be built in Austin and jointly run by Tesla and SpaceX.
  • Musk's project would call for supporting a terawatt of computing power per year, the amount he expects the companies to eventually use as he ramps up his investments in AI and robotics.
  • The facility is expected to make two types of chips, one optimized for edge and inference, and the other a high-power chip designed for space that could be used by SpaceX and xAI.

Elon Musk said his Terafab project — a grand plan to eventually manufacture his own chips for robotics, artificial intelligence and space data centers — will be built in Austin and jointly run by Tesla and SpaceX.

Musk, the chief executive officer of both companies, said he will start off with an “advanced technology fab” in Austin that will have all of the equipment necessary to make chips of any kind, and test them. Musk, who has no background in semiconductor production and a history of over-promising on goals and timelines, had said before that the company will start with a smaller scale fab before moving to a bigger one.

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