Terafab by Tesla Tesla and SpaceX unveiled Terafab, a chip factory designed for both Earth and orbit, aiming to produce AI chips at terawatt scale using solar power. The facility will employ 1 billion Tesla Optimus robots and launch 10 million tons of mass per year into orbit, with over 1 TW of solar power needed. The project seeks to reduce compute costs by leveraging space-based infrastructure, positioning space as the only truly scalable solution for AI's future. Terafab will close the gap between today's chip production and the future's demand — a future among the stars. Harnessing the power of the Sun - Maximize utilization of the Sun's energy - Produce AI chips at scale - Unlock interplanetary travel We're builders. We've done the impossible before. A chip factory built for Earth and orbit Combining logic, memory, and advanced packaging all under one roof Learn More Learn more https://www.spacex.com/updates terafab Scaling for massive capacity 1 Billion Tesla Optimus robots to do the work 10 Million Tons of mass/year launched into orbit 1 TW+ Solar power needed Production at terawatt scale Producing chips for use on Earth and in space Orbital compute Space: the only truly scalable solution for the future of AI Cost of compute on Earth - Power build - Permitting - Operating costs - Land - Energy costs - Infrastructure - Cooling Cost of compute in space - Launch cost - Operating costs - Satellite build - Infrastructure