Data centers in space are going to happen

· The satellites: Starlink. · The power: SpaceX is spinning up its own solar panels. · The chips: Musk is building a giant chip factory of his own called “Terafab.” · · The AI: SpaceX absorbed xAI and now owns Grok. That’s hard to compete with. Jeff Bezos is the closest competitor.

xAI – Weekly Recap - TipRanks.com

Demand for xAI’s Grok chatbot has reportedly been weaker than hoped, adding to concerns about near-term revenue prospects. At the same time, Musk’s broader AI ambitions, including the proposed “Terafab” mega chipmaking project involving SpaceX, xAI, and Tesla, imply significant future capital needs.

Tesla Draws Attention as Traders Raise SpaceX Merger Bets on Record IPO

Dan Ives at Wedbush wrote Thursday that he sees Tesla and SpaceX merging next year, and called it the “holy grail” for Musk’s AI play, Business Insider said. Tesla and SpaceX already cross over on some projects such as the Terafab chip, the report said, and Tesla’s earlier xAI investment turned into a SpaceX stake when SpaceX merged with xAI in February, according to Business Insider.

The value of SpaceX rockets on its stock-market debut | World News

The firm is planning an enormous expansion of its Starlink satellite factory, with production of AI satellites due to start next year. At first the actual computing would be done by the sort of off-the-shelf parts found in any Earthly data centre—although SpaceX hopes eventually to make its own AI chips in another gigantic, yet-to-be-built factory Mr Musk has dubbed the “Terafab”.

From Underperform to Buy. Here Is Why BofA Just Changed Its Mind on INTC.

Analyst Vivek Arya cited growing ... and advanced packaging capacity, alongside a significantly expanded agentic CPU total addressable market opportunity. BofA now projects Intel's integrated device manufacturer earnings power at $6-plus per share by CY2030, up from its prior $3–$4 estimate, pointing to Cadence's 14A node IP sign-up and Terafab engagements ...

Musk’s SpaceX eyes 11M sf “Gigasat” factory in Bastrop County

Both facilities are still smaller than the planned Terafab in Aggieland, a $20-billion-plus project that aims to build out next-gen semiconductor manufacturing. The industrial property will also help scale production in other areas of Musk’s fiefdom, namely Tesla, SpaceX, xAI and the new Gigasat facility.

The $22.7 Trillion Opportunity - Brownstone Research

And to get there, SpaceX needs to build the Terafab, which is designed to be 100 million square feet, which will be 10-times the scale of Tesla’s Gigafactory in Austin, Texas.

Elon Musk is in direct talks with ASML about supplying equipment for his $119 billion TeraFab chip manufacturing project, with the company's CEO calling him "very serious" about the venture.

ASML’s stock surge reflects investor recognition that TeraFab would require ASML’s advanced lithography equipment to operate. ASML dominates the global market for extreme ultraviolet lithography systems, or EUV tools, which are essential for manufacturing cutting-edge semiconductors used in AI systems.