Musk Says Tesla and SpaceX Will Run Terafab

Elon Musk stated that Tesla and SpaceX will build and operate the Terafab AI chip complex in Texas. He clarified that TSMC might only sublease a portion of the facility, ensuring his companies retain full control.

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FILE PHOTO: Computer motherboard and Intel chip appear in this illustration taken August 25, 2025. REUTERS/Dado Ruvic/Illustration/File Photo

TESLA INC CEO Elon Musk said on Wednesday morning that his companies will independently build and operate the Terafab AI chip complex in United States state Texas. The project aims to establish a massive manufacturing hub dedicated to producing artificial intelligence processors. The announcement clarifies leadership of the venture following earlier speculation regarding potential partnerships.

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