New updates have been reported about SpaceX.
Meet Samuel – Your Personal Investing Prophet
- Start a conversation with TipRanks’ trusted, data-backed investment intelligence
- Ask Samuel about stocks, your portfolio, or the market and get instant, personalized insights in seconds
SpaceX is evaluating a massive semiconductor manufacturing project in Grimes County, Texas, with an initial outlay of about $55 billion and a potential total investment reaching $119 billion, according to a local filing. The proposed multi‑phase “Terafab” complex would be a vertically integrated chip and advanced computing facility designed to secure long‑term supply for SpaceX’s AI workloads, satellites, and a planned in‑orbit data center.
The effort would support xAI, now housed within SpaceX, and is being developed with contributions from Tesla and participation from Intel to produce high‑performance chips for AI servers and autonomous systems. Elon Musk has said Terafab is intended to eventually deliver chip capacity equivalent to 1 terawatt of power per year, arguing that external suppliers cannot meet his companies’ AI and robotics needs, though he emphasized that Grimes County is only one of several candidate locations. The move aligns with Musk’s push to guarantee compute for xAI’s Grok models and to monetize demand for AI processing via space‑based data centers, a strategy underpinned by the combined SpaceX‑xAI entity’s reported $1.25 trillion valuation and anticipated public listing in June.