Elon Musk has unveiled plans to build a massive $25bn (£19bn) fabrication facility in Austin, Texas, to manufacture AI chips.
In a speech at the defunct Seaholm Power Plant over the weekend, he claimed the project would be “the most epic chip-building exercise in history by far.” The joint venture is being led by three of Musk’s biggest firms – Tesla, SpaceX and xAI – and will play a major role in scaling chip production for Tesla’s forthcoming Robotaxis and its Optimus humanoid robots. Musk also suggested it could create chips “designed for space” that could be built into satellites deployed by SpaceX.
It comes a month after Musk teased the project, saying that existing suppliers were not able to provide Tesla with the number of AI-capable chips it needs.
The manufacturing facility will supposedly be capable of producing AI chips at an annual scale of 1TW, which would make it the single largest chip fabricator ever built. It will target chips built on a 2nm process, which is currently...