# SpaceX, Tesla Plan $16.8 Billion AI Chip Plant in Texas

2026-08-07T06:06:18+00:00 | World & Diplomacy | Indian Opinion Desk

Corroboration: 1 independent outlet

SpaceX and Tesla plan to invest $16.8 billion in Terafab, an AI semiconductor complex in Grimes County, Texas, the companies said. The first phase will cover 100 million square feet and create at least 3,000 jobs for engineers, technicians and plant operators. The facility is intended to manufacture, package and test advanced logic and memory chips under one roof. The chips will support Tesla’s Optimus humanoid robots and Cybercabs, along with SpaceX’s planned orbital data centres. Texas Governor Greg Abbott has announced a $30 million Texas Enterprise Fund grant for the project. SpaceX says later expansion phases could take total investment higher.

## Coverage

- rediff.com <https://www.rediff.com/news/report/spacex-and-tesla-to-build-168-billion-ai-chip-plant-in-texas/20260807.htm>
- deccanherald.com <https://www.deccanherald.com/business/spacex-to-build-168-billion-chip-plant-in-texas-create-over-3000-jobs-4102553>

Tags: AI chips, Elon Musk, SpaceX, Tesla, Texas
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