SpaceX and Tesla to Jointly Operate Chip Manufacturing Facility in Austin, Texas

Company Overview

Elon Musk's SpaceX and Tesla are partnering to establish a new chip manufacturing facility, dubbed the Terafab, in Austin, Texas. The facility will produce high-performance chips for use in artificial intelligence projects, robotics, and data centers for space applications.

Chip Production and Capacity

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The Terafab aims to produce 1 terawatt of computing power per year, which is equivalent to 1 trillion watts. This capacity will support 100 to 200 GW of computing power on Earth and 1 TW in space. The facility will have the capabilities to design, manufacture, test, and improve each chip.

Initial Investment

While the exact initial investment is not disclosed, reports estimate a range of $20-25 billion.

Supply Chain and Partnerships

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Although Tesla and SpaceX appreciate their existing supply chain, including Samsung, TSMC, and Micron, the companies have decided to build the Terafab to meet their growing demand for computing power. The facility will enable Tesla and SpaceX to expand their chip production beyond the limitations of their current supply chain.

Chip Types and Applications

The Terafab will produce two types of chips: one optimized for edge and inference for use in Tesla's vehicles, robotaxi, and Optimus humanoid robots. The other will be a high-power chip designed for space applications, which will be used by SpaceX and xAI.

Future Plans and Timeline

While a specific timeline for production and output has not been shared, Musk has hinted at the possibility of launching a mini AI data center satellite with 100 kW power in the future. SpaceX has also requested a license from the Federal Communications Commission (FCC) to launch one million data center satellites into orbit around Earth.