The company’s merger with Elon Musk’s AI venture xAI adds another dimension. SpaceX is also reportedly exploring space-based data centers and AI compute initiatives. One collaboration with Tesla, dubbed Terafab, was slated for March 2026.
With xAI comes the Grok large language model and X, formerly known as Twitter. And to entice developers, the company struck a deal with AI coding upstart Cursor, with an option to buy the business for $60 billion in stock. Then there's the Terafab semiconductor fab and computing mega project that it's jointly developing with Tesla.
Terafab and its partner industries, according to the PERC report, would mark a major shift from an agriculture-focused economy in Grimes County to a focus on technology and manufacturing.
Elon Musk’s SpaceX, with Tesla and xAI, has filed plans for a $55 billion semiconductor manufacturing complex in Grimes County, Texas, potentially expanding to $119 billion. The Terafab project, with Intel as a strategic partner, aims to secure ...
Musk introduced Terafab at an event in Austin as part of a broader push into orbital AI infrastructure, competing with Jeff Bezos’ Project Sunrise and Google’s Project Suncatcher.
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The Information’s report also follows comments by Tesla CEO Elon Musk in April that the electric vehicle maker plans to use Intel’s next-generation 14A manufacturing process to make chips at its Terafab project, an advanced AI chip complex Musk has envisioned in Austin, Texas.
The companies already share deep operational ties, including SpaceX’s $697 million in Tesla Megapack purchases and joint planning for the Terafab semiconductor facility to support AI infrastructure. With SpaceX’s anticipated June 2026 listing expected to value it near $1.75 trillion, analysts such as Wedbush’s Dan Ives see 80%+ odds of a post-IPO merger in 2027 driven by AI synergies and Musk’s control.
According to recent IPO disclosures, the company is pursuing plans that envision the deployment of vast AI computing infrastructure, including orbital data centers that would require enormous quantities of advanced semiconductors.
Tesla (TSLA) is building Terafab, ... the project, which requires a $25 billion+ capital investment and involves building two advanced chip factories in Austin....
The latest report comes just weeks after Tesla CEO Elon Musk revealed plans to use Intel's upcoming 14A manufacturing process for chips that will power the company's proposed Terafab project in Austin, Texas.
The addition of Terafab, a chip manufacturing initiative with Tesla and Intel, aims to further extend our vertical integration to chip design and manufacturing to alleviate potential future chip shortages at SpaceX, optimize compute performance, ...
He cited collaboration with TSMC, ... comments by Elon Musk about “Terafab” as examples of broader foundry diversification that could create more opportunities for Cadence....
Tesla's significant reliance on Chi... ... Elon Musk introduced Terafab, a project aiming to produce 1 terawatt of AI computing power annually, marking a shift toward orbital AI infrastructure.
ASML Holding NV (ASML), a Dutch chip-equipment giant best known for making the world’s most advanced lithography machines, is bringing Elon Musk...Source: Ma...
The news is "evidence that AI's biggest players are racing to diversify a supply chain still heavily concentrated in TSMC," said Jacob Bourne, technology analyst at eMarketer. Since Tan took charge, Intel has secured billions of dollars of investments from the Trump administration, Nvidia and SoftBank. It also landed Tesla as the first major customer for its next-generation 14A manufacturing process to make chips for Elon Musk's Terafab project, an advanced AI chip complex
By Toby SterlingComputer chip equipment maker ASML EURONEXT:ASML said on Saturday that Elon Musk will speak at an internal company technology conference this week, discussing his vision for Terafab, a large scale chip plant that would supply Tesla NASDAQ:TSLA and Space X.ASML, as the largest ...