
Terafab: Elon Musk's Craziest Bet Since the Gigafactories?
Tesla, SpaceX & xAI Launch a $20–25 Billion Chip Megafactory to Break Free from TSMC – and Power a Path to the Stars March 22, 2026 – It's official. Yesterday evening (March 21), during a high-profile livestream from Austin's Seaholm Power Plant, Elon Musk unveiled TERAFAB: the joint Tesla–SpaceX–xAI project to build what they call "the largest chip manufacturing facility ever." The goal? Produce enough compute to reach 1 terawatt (1 TW) of AI capacity per year – roughly double the entire current U.S. electricity consumption – with ~80% eventually deployed in space via solar-powered AI satellites, and the rest powering Optimus robots, robotaxis, Dojo clusters, and more.























