Elon Musk announced Terafab, a Texas chip factory built jointly by Tesla and SpaceX. Initial investment stands at $16.8 billion, with total costs potentially reaching $119 billion according to regulatory filings. The plant will span over 9 million square meters, roughly 50 times the size of the Pentagon. It will produce two-nanometer chips for Optimus humanoid robots, Tesla’s autonomous vehicles, SpaceX satellites, and xAI’s orbital data centers. Analysts do not expect the first chips to ship before 2028.
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