SpaceX plans $55B AI chip plant

SpaceX is moving forward with a massive $55 billion investment in a new semiconductor plant in Austin, Texas, dubbed 'Terafab.' The facility is designed to manufacture high-end AI chips to power SpaceX's internal systems and its growing constellation of Starlink satellites.

Elon Musk has characterized the project as a critical step in securing the company's supply chain amid a global shortage of advanced processors.

The move also positions SpaceX as a potential competitor to established chipmakers like Nvidia as the race for AI compute resources intensifies.