SpaceX plans to invest at least $55 billion into a chip manufacturing plant in Austin, Texas, with potential total investment reaching $119 billion if additional phases are built.

SpaceX is planning to invest at least $55 billion into its "Terafab" chip plant in Austin, Texas, according to a public hearing notice filed in Grimes County, Texas. The company says investment could balloon to $119 billion total if additional phases are constructed.

The Texas plant will be run by SpaceX and Tesla and make chips for both companies for use in AI, robotics, and space-based data centers. When Musk initially announced the project in March, he shared plans for it to produce enough chips to support up to 200 gigawatts per year of computing power on Earth, and up to one terawatt in space. Intel announced it would help design and build Terafab.

SpaceX currently operates a "Colossus" data center in Memphis, Tennessee, that recently signed an agreement to power Anthropic's AI models.