SpaceX, the aerospace company founded by Elon Musk, has revealed plans to build custom Graphics Processing Units (GPUs), the chips that power artificial intelligence (AI) systems. The company disclosed the initiative in a filing with the U.S. Securities and Exchange Commission (SEC) on April 1.
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Ahead of this development, the company is warning prospective investors that building out its AI and related technologies will require significant spending and may pose risks before its planned summer initial public offering (IPO).
SpaceX Flags GPU Spending and Chip Supply Risks
In its updated S-1 filing with the U.S. Securities and Exchange Commission, SpaceX said it plans to manufacture its own GPUs as part of its large capital spending plans. The company also noted that it does not have long-term contracts with many of its direct chip suppliers, highlighting a continued reliance on external hardware partners.
Despite this, SpaceX cautioned investors that it will still source a significant portion of its computer hardware from third-party suppliers, even as it explores more in-house capabilities. Hence, the company is warning investors not only about rising costs but also about ongoing supply risks ahead of its IPO.
Some uncertainty still remains about the wording in the official filing. It is not yet clear whether SpaceX used the term “GPU” in a strict technical sense or as a general reference to AI chips. The company also did not provide any further details or disclose how much it plans to spend on GPU manufacturing.
SpaceX Plans AI Chip Complex in Texas
SpaceX’s GPU plans are tied to Terafab, an AI chip manufacturing complex being developed jointly by the firm, its merged xAI unit, and Tesla (TSLA) in Austin, Texas. Musk previously said the facility will make chips for cars, humanoid robots, and space-based data centers, though specific chip types have not been confirmed.
Moreover, he told Tesla analysts on Wednesday that by the time Terafab scales, Intel’s (INTC) next-generation 14A process should be production-ready, making it “the right move.” Unlike chipmakers like Nvidia (NVDA), which split chip production across multiple specialized companies, Musk said Terafab will handle every step in-house. This approach will include design, fabrication, packaging, and testing.
However, it has not been disclosed whether SpaceX, the Terafab developers, or partner Intel will oversee manufacturing inside the facility. The space company has also not set a timeline for when it plans to begin producing its own chips, and Musk warned that there is no guarantee Terafab objectives will be completed on time or at all.
Which Companies Are Going IPO in 2026?
SpaceX is a leading candidate for an IPO in 2026, targeting a June listing. Recent reports also suggest that the company could reach a valuation of about $2 trillion, making it the largest in history. Notably, the firm has already made a confidential filing on April 1, with plans to raise about $75 billion in the IPO. A few other major IPO contenders this year include OpenAI, Anthropic, and data analytics company Databricks. Potential investors can find more information on these firms in the TipRanks Private Company Center.
