Tesla announced that it will join forces with SpaceX and xAI to build the world’s largest chip factory with an annual production capacity of 1 terawatt.

Tesla posted a post titled "TERAFAB: The Next Step towards Galactic Civilization" on the social platform

Tesla said, "This requires ultra-large-scale deployment: the ability to launch millions of tons of materials into orbit; solar-powered artificial intelligence satellites; and millions of Tesla Optimus Prime robots participating in the construction. All these devices require chip support: the Optimus Prime robot alone requires 100 to 200 gigawatts of chips, and solar-powered AI satellites require terawatt-level chip supply."

Tesla said, "This demand far exceeds the current combined production capacity of all chip manufacturers in the world, and will not be able to meet it even by 2030 (based on production capacity growth forecast). We are building a trillion-dollar factory precisely to bridge the gap between current chip production capacity and future demand - a future belonging to an interstellar civilization."

Previously, Tesla CEO Musk announced that the Terafab project aims to achieve terawatts of computing power every year and will involve xAI, Tesla and SpaceX.