SpaceX may spend $119 billion to build chip factory

Jakarta (ANTARA) - SpaceX, the company owned by businessman Elon Musk, is reportedly considering spending funds worth $119 billion (approximately Rp2.06 quadrillion) to build a chip factory in Texas, USA.

The company, which operates in the space industry and now encompasses xAI, may spend $55 billion (approximately Rp953 trillion) in the initial phase for building the factory in Grimes County, Texas.

As reported by TechCrunch on Wednesday (6/5) local time, the factory construction plan along with its cost estimates was found on the Grimes County website.

Elon Musk had previously outlined plans for the project, which he nicknamed “Terafab”.

Musk stated that this project will contribute resources to his electric vehicle company, Tesla.

The billionaire said that the manufacturing facility will eventually produce enough chips to supply 1 terawatt of power per year.

He mentioned that his company is necessary because semiconductor manufacturers are not producing chips quickly enough for the AI and robotics needs of his companies.

However, Musk wrote in a tweet on Tuesday that Grimes County, Texas, is just one of several locations being considered for the factory.

This filing comes as Musk has doubled efforts to ensure xAI has sufficient computing power to train and power its series of Grok AI models.

The combined entity is said to have a valuation of $1.25 trillion (approximately Rp21.6 quadrillion) and is estimated to go public in June.