Key Takeaways:

Elon Musk announced TERAFAB, it is a project to build advanced AI chips in Austin, Texas.
The project is a partnership between Tesla and SpaceX, they want to produce one million megawatts (1 terawatt) of computing power every year.
TERAFAB will help Musk’s companies stop relying on foreign chip makers and support his dream of a galactic civilization with a budget up to $25 billion.

The Grand Announcement in Austin
Elon Musk announced a project which is called TERAFAB. During a live event held at 8:00 PM in Austin, Texas, Musk explained that this is an effort between Tesla and SpaceX to build a factory for AI chips. This technology fab will be located in Austin and will be equipped to design, manufacture, and test any type of chip needed for robotics and space exploration. Musk plans to create a system that can build the machines on Earth and in orbit.

Building the Future with 2nm Technology
The goal of TERAFAB is to reach a production level of one terawatt of computing power per year. The factory will focus on producing 2nm chips, which are the fastest and most efficient chips in the world. Musk confirmed that the production plan is unique, 80% of the computing power will be sent into space for satellite networks, the remaining 20% will be used for projects on the ground. The factory will start by producing 100,000 silicon wafers every month, it has the space to grow until it reaches one million wafers per month, it will become one of the largest chip factories in the world.
Powering Robots, Cars, and Satellites
These chips have specific applications across Musk’s business empire. The factory will produce the AI5 chips required for the next generation of Full Self Driving (FSD) cars and the Optimus humanoid robot. For SpaceX, they focus on creating megawatt-class chips for AI satellites and space based data centers. The two teams are now working to build an intelligence network in the sky. These satellites will work like supercomputers in space, it will provide AI processing for the planet.
Achieving Independence and Galactic Growth
Building TERAFAB with estimated costs between $20 billion and $25 billion. Musk said that this investment is necessary to make sure that his companies are self sufficient, which means that they won’t depend on chip factories in Asia. Musk believes that he can move faster and protect his technology from supply chain problems in the world. 
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