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Elon Musk Confirms Tesla and SpaceX Will Build and Run Terafab AI Chip Plant
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Firstpost•07-10-2026, 15:19
Elon Musk Confirms Tesla and SpaceX Will Build and Run Terafab AI Chip Plant
- •Elon Musk clarified that Tesla and SpaceX will take the lead in building and operating the upcoming Terafab AI chip facility in Texas.
- •Musk firmly rejected the idea that TSMC would own or operate the plant, stating that TSMC might only potentially sublease a part of it.
- •The ambitious semiconductor project aims to manufacture custom artificial-intelligence chips to power Tesla and SpaceX technologies.
- •Discussions regarding potential partnerships and cooperation continue with industry giants like TSMC and Intel.
Key Questions Answered
Elon Musk confirmed that Tesla and SpaceX will take the lead in building and operating the Terafab facility in Texas, stating that there is zero doubt they will run the fab themselves rather than handing control to TSMC.
Elon Musk noted that TSMC could potentially sublease part of the Terafab facility, though it will not control the broader operation. Meanwhile, Intel chief executive Lip-Bu Tan confirmed that Intel will remain involved as a technology partner in the venture.
Terafab represents an effort to secure greater control over advanced computing hardware for artificial intelligence applications. Tesla is developing AI systems for its vehicles and robotics ambitions, while SpaceX has its own substantial computing requirements.
