Tesla, SpaceX, and xAI Announce TERAFAB — a 1-Terawatt Chip Factory in Austin

Elon Musk's three companies are jointly building what they claim will be the largest chip manufacturing facility ever constructed, targeting 1 terawatt per year of output. The facility will be built in Austin and aims to supply silicon for Optimus robots, AI training, and space-based compute.

Tesla, SpaceX, and xAI announced TERAFAB on Sunday, a joint venture to build what the companies describe as the largest chip manufacturing facility in history, with a target output of 1 terawatt per year. As @Tesla put it in a post that went viral: "TERAFAB: the next step to becoming a galactic civilization." Bloomberg's @business confirmed the facility will be built in Austin, Texas.

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