Elon Musk launches 'Terafab' project to make own AI chips

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Elon Musk says the task  would beryllium  tally  jointly by his electric-vehicle firm, Tesla, and his rocket company, SpaceX. File picture

Elon Musk says the task would beryllium tally jointly by his electric-vehicle firm, Tesla, and his rocket company, SpaceX. File picture | Photo Credit: AP

Elon Musk announced connected Saturday (March 22, 2026) a program to marque chips for artificial intelligence, robotics and information centres successful space, successful the latest bold task by the world's richest person.

The "Terafab", a manufacturing installation based adjacent Austin, Texas, volition purpose to nutrient 1 terawatt of computing powerfulness per year, Mr. Musk said.

A terawatt is equivalent to 1 trillion watts. That is somewhat little than the full powerfulness procreation capableness of the United States, according to an manufacture group.

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Mr. Musk said the task would beryllium tally jointly by his electric-vehicle steadfast Tesla and his rocket institution SpaceX.

He did not disclose the archetypal investment. Previous US media reports person enactment the fig betwixt $20 cardinal and $25 billion.

Mr. Musk, who has nary anterior acquisition successful semiconductors, said the Terafab was indispensable due to the fact that Tesla and SpaceX's request for computing powerfulness was expected to acold transcend that of planetary spot suppliers.

"We're precise grateful to our existing proviso chain, to Samsung, TSMC, Micron, and others... but there's a maximum complaint astatine which they're comfy expanding," Mr. Musk said.

"That complaint is overmuch little than we would like... and we request the chips, truthful we're going to physique the Terafab."

An "advanced exertion fab" successful Austin volition person the facilities to design, manufacture, trial and amended each chip, Mr. Musk said.

Eventually, the task aims to marque chips to enactment 100 to 200 gigawatts of computing powerfulness connected Earth, and a terawatt successful space.

Mr. Musk did not springiness a timeline for the Terafab's output, and has antecedently promised expansive results from different projects connected compressed clip scales.

He said the Terafab would yet assistance humanity go a "galactic civilization" susceptible of harnessing the resources of different planets and stars.

Published - March 22, 2026 12:47 p.m. IST

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