SpaceX has a $55 billion plan to build AI chips in Texas

SpaceX is planning to invest at least $55 billion in its “Terafab” AI chip plant in Austin, Texas, according to a public hearing notice tied to a tax-break request, with the total potentially reaching $119 billion if later phases are built. Musk originally said in March that the factory could eventually produce enough chips to support up to 200 gigawatts per year of compute, making it one of the most ambitious chip manufacturing plans in the U.S.

Elon Musk's plans to get into the AI chip manufacturing business are going to be costly. As the The New York Times and CNBC report, SpaceX is planning to invest at least $55 billion into its "Terafab" chip plant in Austin, Texas. That's according to the details of a public hearing notice filed in Grimes County, Texas, for a meeting to request tax breaks for the project. The company says that if additional phases are constructed, its investment could someday balloon to $119 billion total. When Musk initially announced the project in March, he shared ambitious plans for it to produce enough chips to support up to 200 gigawatts per year of com … Read the full story at The Verge.