Tesla and SpaceX plan a Texas chip complex with a $16.8 billion initial investment, part of a two-site effort to expand AI chip capacity for both companies.
The Grimes County plan outlines operational space exceeding 100 million square feet, projects at least 3,000 jobs and lists an initial investment of $16.8 billion.
Production is slated for Grimes County. Construction began in April 2026 at Tesla's Giga Texas campus in Austin, where a second Terafab site is meant to support fast testing of chip designs before manufacturing.
The chips are intended for Tesla vehicles, Optimus robots and Cybercabs, along with SpaceX's planned data centers in space. Terafab's longer-term objective is to reach one terawatt in AI computing capacity each year.
