A court filing reveals that SpaceX’s “Terafab” plant could cost up to $119 billion. As reported by the New York Times and CNBC, SpaceX is planning a minimum investment of $55 billion in its Austin, Texas, AI chip plant. A public hearing notice in Grimes County, Texas, details this as part of a tax break request for the project. If further phases are added, the investment may rise to a total of $119 billion. Initially announced by Elon Musk in March, the plant aims to produce chips supporting up to 200 gigawatts of computing power annually on Earth and one terawatt in space. SpaceX is also expanding its data center operations, currently running a “Colossus” data center in Memphis, Tennessee, to support Anthropic’s AI models. The Texas facility will supply chips for SpaceX and Tesla, designed for AI, robotics, and space-centric data centers. Last month, Intel announced it would contribute to the Terafab project, enhancing its capacity to produce 1 TW/year of compute power for AI and robotics advancements.
SpaceX Unveils $55 Billion Initiative to Manufacture AI Chips in Texas
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