Elon Musk’s SpaceX Plans $55 Billion Investment to Make A.I. Chips

The scale of Elon Musk’s ambitious plan to build a giant computer chip plant in Texas is becoming clear — and it is stunning.

The first stage of the chip manufacturing project led by his rocket company, SpaceX, will cost at least $55 billion, according to a public hearing notice filed on Wednesday in Grimes County, Texas, where the factory will be located. Total spending could reach $119 billion.

The project, called Terafab, is intended to supply chips to power artificial intelligence for SpaceX and Tesla, Mr. Musk’s electric car company. SpaceX is also asking for tax breaks for the project, something that will be discussed at a hearing next month, according to the notice.

SpaceX is pursuing the chip manufacturing plant as the rocket company prepares to go public as soon as June, in what is likely to be one of the largest initial public offerings ever.

Article source: https://www.nytimes.com/2026/05/07/business/spacex-chips-terafab.html