Elon Musk has unveiled Terafab, a groundbreaking chip production facility designed to unlock vast AI computing power for space-based infrastructure and human expansion beyond Earth. Tesla, SpaceX, and xAI are collaborating on the project, aiming to produce one terawatt of computing annually-50 times current global output.
Terafab would integrate the full chip development cycle, from lithography mask creation to testing and redesign, enabling faster iteration. The project is set to begin with a Texas facility, backed by state support.
Two chip types are envisioned: one for edge inference, like Tesla’s robots and autonomous vehicles, and another for space conditions, built to withstand extreme environments. Musk argues that terrestrial power limits make a terawatt of compute impossible on Earth, so the infrastructure will orbit aboard solar-powered satellites.
Starship, SpaceX’s launch system, is critical to transporting materials to orbit. Musk aims to reduce launch costs to $100-$200 per kilogram, making space-based AI cheaper than ground-based alternatives within two to three years.