Tesla, SpaceX Build Texas Terafab Chip Factories

According to Reuters Videos, one facility will manufacture chips for cars and humanoid robots, while the other is designed for processors used in artificial intelligence data centers in space. Musk stated that current global chip production meets only a small fraction of his companies' future requirements, asserting, "we either build the Terafab or we don't have the chips." The billionaire CEO confirmed Terafab's projected annual output of one terawatt of computing capacity significantly surpasses the U.S.'s current total of approximately half a terawatt.

Musk previously indicated Tesla's need for its own AI chip plant, but SpaceX's involvement was a new disclosure. No timeline for the project was provided.

SpaceX is preparing for a public listing, which could value the rocket firm at around $1.75 trillion.