Tesla, SpaceX pledge $16.8B for Texas AI chip fab, dwarfing Tesla's profit
The companies announced a $16.8B initial investment in Terafab, a massive semiconductor facility in Grimes County, Texas, planned to employ 3,000 and produce AI chips for Tesla robots and SpaceX data centers. The spend is more than four times Tesla’s annual net income of $3.8B, underscoring the scale of their AI hardware push.