Prediction: SpaceX Won't Merge With Tesla. It's Going to Buy This Nvidia-Backed Artificial Intelligence (AI) Company Instead. | The Motley Fool

The company is building its own custom silicon through the Terafab initiative while also maintaining a relationship with Nvidia for training and inference infrastructure. In addition, SpaceX acquired xAI -- the maker of the Grok generative model -- to further consolidate artificial intelligence (AI) development under one roof.

Elon Musk Announces xAI Will Become SpaceXAI Division - Not a Tesla App

The existing xAI logo will likely be phased out, and a new SpaceXAI logo, which conveniently still has the xAI letters in the name, will be designed and presented. The formation of SpaceXAI consolidates both hardware and software resources into a single entity. With the ongoing development of the $119 billion TERAFAB semiconductor fab and the new capabilities of the upcoming Starship V3, SpaceX is rapidly evolving beyond a traditional launch provider with an internet side business.

Intel's Lip-Bu Tan Teases "Exciting New Products" With NVIDIA as He Hoods Jensen Huang at Carnegie Mellon Doctorate Ceremony

NVIDIA has been searching for another foundry where it could produce additional GPUs, and it looks like they have found one partner in the form of Intel. With Intel's Foundry business securing recent TeraFab and Apple deals, it looks like these will act as a major confidence booster for external customers such as NVIDIA to use Intel's Fabs to secure extra production of their latest and greatest chips.

SpaceX Flags at Least $55 Billion Investment in Chip Plant - Bloomberg

Elon Musk’s SpaceX estimated a chip factory it plans to build along with Tesla Inc. will cost at least $55 billion, with total investment potentially exceeding the amount the rocket maker aims to raise from a record initial public offering.

Tesla reports $890M in sales to SpaceX, xAI ahead of IPO

Wedbush’s Dan Ives estimates there is a significant chance of a Tesla–SpaceX merger by 2027, pointing to shared AI, data, and infrastructure ambitions. He highlights the Terafab semiconductor project and overlapping leadership as developments that could support closer alignment.

Emerging Market Links + The Week Ahead (June 8, 2026)

Key angles include: 1) SpaceX’s Terafab and Anthropic’s upcoming IPO creating competitive pressure and capital allocation shifts for Korean giants like Samsung and SK Hynix (now cheap vs. Micron). 2) Chinese memory chip IPOs (CXMT, Longsys) signaling a domestic DRAM push. 3) Taiwan’s TSMC as the ultimate beneficiary of AI’s hardware arms race, and ASE Technology re-rating beyond traditional OSAT.

Google is ordering millions of AI chips from Intel as TSMC strains to meet demand

The company lost ground to TSMC following years of management difficulties and has been working under CEO Lip-Bu Tan to reverse that trajectory. Intel has secured investments from Nvidia and SoftBank, and last month The Wall Street Journal reported that Intel reached a preliminary agreement to make some chips for Apple $AAPL devices. Intel has also secured Tesla $TSLA as a customer for its 14A process node, which will be used to fabricate chips destined for the Terafab ...

SpaceX has a $55 billion plan to build AI chips in Texas | The Verge

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.”

Elon Musk is building something massive for AI and the scale is starting to worry people

By producing his own semiconductors, Musk not only reduces long-term costs but also gains total control over chip architecture, optimizing them specifically for his own AI algorithms. Loading video... ... One of the project’s most notable highlights is the collaboration with Intel. The processor giant will join Terafab for the design, manufacturing, and assembly of ultra-high-performance chips.

SpaceX bets big on Terafab chip complex | The DONG-A ILBO

Last month, the company formally ... chip design, production and advanced packaging for high-performance semiconductors. The agreement marks the first major customer win for Intel’s 14A process node.