Elon Musk officially announces the launch of the Terafab project Tesla, SpaceX, xAI, and robots are all short on chips and computing power. Right now, they rely on buying from NVIDIA and TSMC. If others cut off the supply, they're done for. So, he's making his own chips to take control of his destiny. The project investment is $25-40 billion. Most of it is focused on space. The current global annual chip production capacity is about 20 gigawatts (GW), which is only around 2% of our target demand. The remaining 98% gap will be self-produced.