SpaceX's Next Big Business Isn't Rockets. It's Computer Chips.
Yahoo Finance ·
Six months ago, SpaceX ( SPCX +2.83% ) was a private rocket company. Today, it is a public one worth more than $2 trillion, and its most intriguing new project has nothing to do with launching rockets. In March 2026, Elon Musk unveiled Terafab, a sprawling semiconductor venture, run alongside his electric-car company Tesla ( TSLA 7.35% ) and AI start-up xAI, with Intel ( INTC 5.61% ) later signing on to contribute manufacturing technology. The pitch is audacious: build chips not just for cars and robots, but for artificial intelligence (AI) data centers in orbit. For a company this new to the public market, it's worth asking what a bet like that could mean -- and what it's worth today. Terafab begins with a prototype fab in Austin and a far larger complex planned elsewhere in Texas. Intel joined the effort in April to contribute its process technology, including its next-generation 14A manufacturing process for the full-scale plant. The scale is staggering: SpaceX has pegged the initial investment at about $55 billion and the total build-out at up to $119 billion. Interestingly, the space angle is what sets it apart. Musk has said that a large share of Terafab's output is aimed at chips for artificial-intelligence data centers in orbit, where abundant sunlight provides power, and cooling would be easier.
DYAX Investor Sentiment
Bullish (Long) 54% · Bearish (Short) 46%
418 participants
Related News
- Why Figure Technology Solutions Stock Zoomed More Than 21% Higher This Week
- How Dell Technologies Inc.’s (DELL) AI Server Guidance Reset Is Driving Its Earnings Estimate Momentum
- Why Xpeng Stock Was a Winner This Week
- Western Digital (WDC) Stock Falls As Apple CXMT Talk Adds Memory Pressure
- Is Baidu, Inc. (BIDU) A Good Stock To Buy Now?
- Forget AI Stocks: This Defense Giant Has Raised Its Dividend Each of the Last 10 Years and Currently Pays a 2.75% Yield