Tesla and SpaceX Commit Billions to Texas Chip Plant

Tesla and SpaceX have formally committed $16.8 billion to build the Terafab chip plant in Grimes County, Texas, just north of Houston.

The project was initially planned for Austin, but has since been relocated, with total spending potentially reaching $119 billion.

The 100 million square foot facility will be used to produce advanced chips for artificial intelligence (AI) workloads across Musk's companies, including edge computing and inference tasks for Tesla's Optimus robots and Cybercab autonomous vehicles, as well as higher-power chips built for SpaceX's orbital data centers.

Tesla and SpaceX hold a combined $1.29 billion in BTC, which is tied to the success of Terafab, the largest building on Earth by far, according to Musk.