Terafab Joint Venture with SpaceX and Intel
Tesla, SpaceX, and Intel announced a joint venture for a massive AI chip factory in Austin: 100M+ sq ft, $16.8B initial investment, potentially $119B total. Using Intel's 14A process, it will produce chips for FSD, Optimus, and energy compute. Compute split confirmed: 75% SpaceX, 25% Optimus. Power strategy includes natural gas and Megapacks, raising environmental concerns as Tesla's clean-energy brand faces scrutiny.
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Updated Aug 11, 2026