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SpaceX has a $55 billion plan to build AI chips in Texas
AI Close AI Posts from this topic will be added to your daily email digest and your homepage feed. Follow Follow See All AI News Close News Posts from this topic will be added to your daily email digest and your homepage feed. Follow Follow See All News Science Close Science Posts from this topic will be added to your daily email digest and your homepage feed. Follow Follow See All Science SpaceX has a $55 billion plan to build AI chips in Texas The “Terafab” plant could cost SpaceX up to $119 billion total, according to a court filing. The “Terafab” plant could cost SpaceX up to $119 billion total, according to a court filing. by Stevie Bonifield Close Stevie Bonifield News Writer Posts from this author will be added to your daily email digest and your homepage feed. Follow Follow See All by Stevie Bonifield May 7, 2026, 7:26 PM UTC Link Share Gift Photo: Mario Tama / Getty Images Stevie Bonifield Close Stevie Bonifield Posts from this author will be added to your daily email digest and your homepage feed. Follow Follow See All by Stevie Bonifield is a news writer covering all things consumer tech. Stevie started out at Laptop Mag writing news and reviews on hardware, gaming, and AI. Elon Musk’s plans to get into the AI chip manufacturing business are going to be costly. As the New York Times and CNBC report, SpaceX is planning to invest at least $55 billion into its “Terafab” chip plant in Austin, Texas. That’s according to the details of a public hearing notice filed in Grimes County, Texas, for a meeting to request tax breaks for the project. The company says that if additional phases are constructed, its investment could someday balloon to $119 billion total. When Musk initially announced the project in March, he shared ambitious plans for it to produce enough chips to support up to 200 gigawatts per year of computing power on Earth, and up to one terawatt in space. SpaceX is also trying to expand its data center footprint on Earth, and currently operates a “Colossus” data center in Memphis, Tennessee, that recently signed an agreement to power Anthropic’s AI models . The Texas plant will be run by SpaceX and Tesla and make chips for both companies, which Musk has said will be used for AI, robotics, and space-based data centers. Last month, Intel announced that it would help design and build Terafab , saying, “Our ability to design, fabricate, and package ultra-high-performance chips at scale will help accelerate Terafab’s aim to produce 1 TW/year of compute to power future advances in AI and robotics.” Follow topics and authors from this story to see more like this in your personalized homepage feed and to receive email updates. Stevie Bonifield Close Stevie Bonifield News Writer Posts from this author will be added to your daily email digest and your homepage feed. Follow Follow See All by Stevie Bonifield AI Close AI Posts from this topic will be added to your daily email digest and your homepage feed. Follow Follow See All AI Elon Musk Close Elon Musk Posts from this topic will be added to your daily email digest and your homepage feed. Follow Follow See All Elon Musk News Close News Posts from this topic will be added to your daily email digest and your homepage feed. Follow Follow See All News Science Close Science Posts from this topic will be added to your daily email digest and your homepage feed. Follow Follow See All Science Space Close Space Posts from this topic will be added to your daily email digest and your homepage feed. Follow Follow See All Space SpaceX Close SpaceX Posts from this topic will be added to your daily email digest and your homepage feed. Follow Follow See All SpaceX Tech Close Tech Posts from this topic will be added to your daily email digest and your homepage feed. Follow Follow See All Tech xAI Close xAI Posts from this topic will be added to your daily email digest and your homepage feed. Follow Follow See All xAI Most Popular Most Popular Canvas is down as ShinyHunters threatens to leak schools’ data Musk’s biggest loyalist became his biggest liability Here’s what Microsoft is offering long-serving employees to voluntarily retire Apple agrees to pay iPhone owners $250 million for not delivering AI Siri Google shuts down Project Mariner The Verge Daily A free daily digest of the news that matters most. Email (required) Sign Up By submitting your email, you agree to our Terms and Privacy Notice . This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. Advertiser Content From This is the title for the native ad
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