Posted Aug 6, 2026 at 4:02 PM UTCAElon Musk’s Terafab will be built — where else? — in Texas.The massive $16.8 billion chip facility, which is being built by Tesla and SpaceX with help from Intel, will be located in Grimes County, population 29,268. After securing over a billion dollars in tax breaks from two rural school districts, SpaceX says it will break ground later this year. The fab will supply AI chips to power Musk’s plans to build a “robot army” that includes self-driving cars and humanoid robots, as well as for the data centers he plans on launching into space.Follow topics and authors from this story to see more like this in your personalized homepage feed and to receive email updates.Andrew J. Hawkins
Elon Musk’s Terafab will be built — where else? — in Texas.
The massive $16.8 billion chip facility, which is being built by Tesla and SpaceX with help from Intel, will be located in Grimes County, population 29,268. After securing over a billion dollars in tax breaks from two rural school districts, SpaceX says it will break ground later this year. The fab will supply AI chips to power Musk’s plans to build a “robot army” that includes self-driving cars and humanoid robots, as well as for the data centers he plans on launching into space. [Media: https://twitter.com/Tesla/status/2085365278276284803?s=20]
TL;DRAI
Musk's Tesla and SpaceX are building Terafab, a $16.8B AI chip fab in Texas with groundbreaking this year, to supply self-driving cars and humanoid robots. Vertical integration into chip manufacturing consolidates his AI stack and directly challenges TSMC's dominance of critical semiconductors.
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