{"id":283345,"date":"2026-05-07T20:37:16","date_gmt":"2026-05-07T20:37:16","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-tx\/283345\/"},"modified":"2026-05-07T20:37:16","modified_gmt":"2026-05-07T20:37:16","slug":"spacex-has-a-55-billion-plan-to-build-ai-chips-in-texas","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-tx\/283345\/","title":{"rendered":"SpaceX has a $55 billion plan to build AI chips in Texas"},"content":{"rendered":"<p class=\"duet--article--dangerously-set-cms-markup duet--article--standard-paragraph _1ymtmqpi _17nnmdy1 _17nnmdy0 _1xwtict1\">Elon Musk\u2019s plans to get into the AI chip manufacturing business are going to be costly. As the <a href=\"https:\/\/www.theverge.com\/science\/917432\/spacex-is-making-its-own-gpus\" rel=\"nofollow noopener\" target=\"_blank\">New York Times<\/a> and <a href=\"https:\/\/www.cnbc.com\/2026\/05\/06\/elon-musks-spacex-chip-fab-in-texas-to-cost-up-to-119-billion.html\" rel=\"nofollow noopener\" target=\"_blank\">CNBC<\/a> report, SpaceX is planning to invest at least $55 billion into its \u201cTerafab\u201d chip plant in Austin, Texas. That\u2019s according to the details of a public hearing notice filed in Grimes County, Texas, for a meeting to request tax breaks for the project.<\/p>\n<p class=\"duet--article--dangerously-set-cms-markup duet--article--standard-paragraph _1ymtmqpi _17nnmdy1 _17nnmdy0 _1xwtict1\">The company says that if additional phases are constructed, its investment could someday balloon to $119 billion total. When Musk initially <a href=\"https:\/\/www.theverge.com\/ai-artificial-intelligence\/898722\/musk-terafab-chip-plant\" rel=\"nofollow noopener\" target=\"_blank\">announced the project<\/a> in March, he shared ambitious plans for it to produce enough chips to support up to 200 gigawatts per year of computing power on Earth, and up to one terawatt in space. SpaceX is also trying to <a href=\"https:\/\/www.theverge.com\/ai-artificial-intelligence\/912337\/a-data-center-should-not-be-a-potential-death-sentence-for-a-communitys-health\" rel=\"nofollow noopener\" target=\"_blank\">expand its data center footprint<\/a> on Earth, and currently operates a \u201cColossus\u201d data center in Memphis, Tennessee, that recently signed an agreement to <a href=\"https:\/\/www.theverge.com\/ai-artificial-intelligence\/925348\/anthropics-claude-usage-limits-are-getting-a-boost-after-compute-deals-with-spacex-and-others\" rel=\"nofollow noopener\" target=\"_blank\">power Anthropic\u2019s AI models<\/a>.<\/p>\n<p class=\"duet--article--dangerously-set-cms-markup duet--article--standard-paragraph _1ymtmqpi _17nnmdy1 _17nnmdy0 _1xwtict1\">The Texas plant will be run by SpaceX and Tesla and make chips for both companies, which Musk has said will be used for AI, robotics, and space-based data centers. Last month, Intel announced that it would <a href=\"https:\/\/www.theverge.com\/transportation\/907976\/elon-musk-terafab-intel-ai-chip-spacex-tesla\" rel=\"nofollow noopener\" target=\"_blank\">help design and build Terafab<\/a>, saying, \u201cOur ability to design, fabricate, and package ultra-high-performance chips at scale will help accelerate Terafab\u2019s aim to produce 1 TW\/year of compute to power future advances in AI and robotics.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Elon Musk\u2019s plans to get into the AI chip manufacturing business are going to be costly. As the&hellip;\n","protected":false},"author":2,"featured_media":283346,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[4267,8892,223,2220,3951,2223,302,27,29,28,8624],"class_list":["post-283345","post","type-post","status-publish","format-standard","has-post-thumbnail","category-texas","tag-ai","tag-elon-musk","tag-news","tag-science","tag-space","tag-spacex","tag-tech","tag-texas","tag-texas-headlines","tag-texas-news","tag-xai"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts\/283345","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/comments?post=283345"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts\/283345\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/media\/283346"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/media?parent=283345"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/categories?post=283345"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/tags?post=283345"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}