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Elon Musk announces ambitious AI chip manufacturing project

Monday 23 March 2026 - 10:15
Elon Musk announces ambitious AI chip manufacturing project

American billionaire Elon Musk has unveiled plans for a groundbreaking project to manufacture electronic chips dedicated to artificial intelligence, robotics, and space-based data centers. The facility, named “Terafab,” will be located near Austin, Texas, with the goal of producing one terawatt of computing power per year—roughly equivalent, according to industry experts, to the total electrical power generated by the United States.

The initiative will be carried out through a joint effort between Musk’s electric vehicle company, Tesla, and his aerospace firm, SpaceX. While the exact investment has not been officially disclosed, U.S. media reports estimate costs between $20 and $25 billion.

Musk explained that the Terafab project responds to the growing demand for computational power within Tesla and SpaceX, which is expected to exceed the production capacity of current global chip suppliers. Long-term plans include producing chips capable of delivering 100 to 200 gigawatts of computing power on Earth, with up to one terawatt in space. No precise timeline has yet been announced for the project’s implementation.


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