SpaceX has a $55 billion AI chip maker in Texas

Elon Musk’s plans to enter the AI ​​hardware business will be expensive. Like New York Times and Price CNBC report, SpaceX plans to invest at least $55 billion in its “Terafab” plant in Austin, Texas. This is according to the details of a public hearing that was provided in Grimes County, Texas, at a meeting to request a tax break for the project.

The company says that if additional shares are created, its revenue could one day reach $119 billion. When Musk first announced the project in March, they shared ambitious plans to make enough chips to support up to 200 gigawatts a year of computing power on Earth, and up to 1 terawatt in space. SpaceX is trying again add its central data entry On Earth, and is currently working on the “Colossus” data center in Memphis, Tennessee, which recently signed an agreement to power Anthropic’s AI models.

The Texas plant will be operated by SpaceX and Tesla and produce chips for both companies, which Musk said will be used in AI, robotics, and data centers. Last month, Intel announced that it would help design and build Terafabsaid, “Our ability to design, manufacture, and deploy high-performance chips will help accelerate Terafab’s goal of generating 1 TW/year of compute to support advances in AI and robotics.”