This page may contain stale information. Last updated: 2026-04-24
Overview
Terafab is Elon Musk’s ambitious AI chip manufacturing project, designed to provide vertically integrated compute for Tesla, SpaceX, and xAI operations. The project represents a shift from AI competition centered on software to competition over manufacturing infrastructure.
Key Details
- Location: Austin, Texas (initial research fab on Tesla Gigafactory Texas campus)
- Partnership: Joint venture with intel (14A process)
- Timeline: $3B pilot facility in 2026; small-batch production in 2027; high-volume by 2028-2029
- Goals: 1 terawatt of computing power annually (~100-200 million chips)
Strategic Significance
- Vertical integration from chip design to manufacturing
- Space-based AI data centers concept
- Intel foundry business validation
- Positioning against TSMC and Samsung
Companies Involved
- tesla: Managing R&D and pilot lines, first external customer for Intel 14A
- spacex: Overseeing high-volume manufacturing
- xai: AI training compute needs