Elon Musk’s ambitions to enter the AI chip manufacturing sector are set to come with a staggering price tag. According to reports from The New York Times and CNBC, SpaceX is preparing to invest a minimum of $55 billion into its upcoming "Terafab" chip plant in Austin, Texas.
These details emerged from a public hearing notice filed in Grimes County, Texas, regarding a meeting to request tax incentives for the project.
SpaceX has indicated that if additional phases of the plant are constructed, the total investment could eventually reach $119 billion.
When Musk first unveiled the project in March, he outlined ambitious goals for Terafab, including the production of enough AI chips to support up to 200 gigawatts per year of computing power.
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