Musk will build two chip factories for robots and space data centers

“Technically, Terafab is two chip factories, each producing a unique chip design,” the American billionaire wrote on X on March 22. “We need a high-performance chip, designed for space, which has a harsher environment, operating at higher temperatures.”

“Terafab” has been mentioned by Musk a lot recently. He envisions using this as a complex to produce advanced AI chips, with the goal of achieving a computing capacity of one terawatt per year, double the half-terawatt level – the highest capacity a factory in the US currently has.

On March 21, he also mentioned this keyword at a presentation in Austin, Texas. “We either have to build Terafab, or there won’t be enough chips,” the billionaire emphasized, adding that global chip output currently “only meets a small part” of the future demand for his companies.

However, Musk did not give a specific operating timeline for the two new factories. He is famous for announcing ambitious projects, but many of them are delayed or canceled. Last year, he also said that Tesla needed to build an AI chip factory and did not provide a detailed roadmap at that time.

Musk now aims to build a data center in space. On February 3, he merged xAI into SpaceX to serve this ambition. According to SpaceX, the project helps take advantage of almost continuous solar energy, reducing operating and maintenance costs compared to ground-based facilities. The company also affirms that this model can reduce environmental impact, as there is no need to use cooling water or consume electricity from the residential grid.

With humanoid robots, Tesla is currently developing the Optimus model, although it has not made significant progress. Musk once predicted that robots would become popular everywhere, creating a boom for the global economy, and believed that robots and AI were the way to prosperity for the world.