Musk and Intel build orbital AI

The launch of Terafab, a massive $25 billion semiconductor joint venture between Tesla, SpaceX, and xAI located in Austin, Texas. This ambitious project aims to achieve a total compute output of one terawatt per year, which is approximately fifty times the current global production capacity. The facility will utilize 2-nanometer process technology to manufacture custom chips for terrestrial applications like humanoid robots and autonomous vehicles, as well as specialized hardware for space-based data centers. Intel has officially joined as a primary foundry partner, providing the advanced packaging and fabrication expertise necessary to scale this unprecedented infrastructure. While some industry analysts express skepticism regarding the staggering capital requirements and logistical hurdles, proponents view the project as a critical step toward achieving Artificial General Intelligence and ensuring a domestic supply of essential semiconductors. Notably, the venture signifies a functional convergence of Elon Musk's various companies, potentially utilizing a future SpaceX IPO to fund these shared technological advancements.