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  5. Terafab
Infrastructure & Hardwareaka Terafab.ai

Terafab

Terafab is a Tesla, SpaceX, and Intel semiconductor fabrication project announced in March 2026 to manufacture AI chips at massive scale for both companies.

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Tesla and SpaceX lead the project with Intel as manufacturing partner, building a fab on a confirmed Grimes County, Texas site to produce chips for SpaceX and Tesla Optimus, with reported filings putting phase-one cost near $16.8 billion and total spend up to $119 billion. Elon Musk has said output splits roughly 75% SpaceX and 25% Tesla, and pointed his X profile link to Terafab.ai in August 2026, raising the project's public visibility months after the original announcement.

Related terms

AI ChipComputeAI Compute CostTraining ClusterQuantizationInfiniBand