Elon Musk has announced the Terafab project, a joint venture between Tesla, SpaceX and xAI, to build the “largest chip manufacturing facility ever.” The project aims to produce a terawatt of computing power each year to meet the growing demand for chips from Tesla and SpaceX. The estimated cost of the Terafab project is at least $20 billion and it will start in Austin, Texas. Musk plans to produce two types of chips, one for terrestrial purposes and another for space. Despite Musk’s ambitious plans, there is skepticism due to his track record of overpromising and underdelivering on projects like the Hyperloop and the Cybertruck.
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