Musk Is Building the World's Biggest Chip Factory in Texas, and Three Quarters of It Is Meant for Robots in Orbit

Minds, Bodies, and Terawatts · Aug 7, 2026 · 4m · transcript

SpaceX and Tesla confirmed Thursday that Terafab, a vertically integrated AI chip megafab, will be built in Grimes County, Texas, with a $16.8 billion first phase and more than 100 million square feet of manufacturing space at full build. The stated goal is over one terawatt of compute per year because, in Tesla's words, both companies will need more chips than global production can supply. The output is earmarked for Optimus humanoids, Cybercab robotaxis, and SpaceX's planned satellite data centers.

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