SpaceX and Tesla start building $16.8B Terafab chip facility

SpaceX and Tesla have begun construction on Terafab, a chip-manufacturing facility spanning roughly 100 million square feet with an initial capital investment of $16.8 billion. The companies say it will be about three times larger than Samsung's Pyeongtaek campus.

Why it matters: This adds Elon Musk's companies to the growing list of non-traditional players building their own chip manufacturing capacity, following similar vertical-integration moves by Anthropic and others racing to secure AI compute independent of Nvidia and TSMC. The scale suggests it's meant to serve compute needs across xAI, Tesla's robotics work, and SpaceX.