OpenAI announced on March 24th the closure of its AI video generation platform Sora and the termination of its $1 billion partnership agreement with Disney. CEO Sam Altman stated that the company will shift its strategy towards enterprise level productivity tools and coding tools, and the Sora team will turn to world simulation research for long-term development of robotics technology, in preparation for the planned IPO.

On March 22, Musk officially announced the Terafab chip manufacturing project in Austin, Texas, with a joint investment of $25 billion from Tesla, SpaceX, and xAI. The goal is to produce chips that support 100-200 gigawatts of Earth computing power and 1 terawatt of space computing power annually. Sequoia Capital partner Shaun Maguire publicly supports it, asserting that 'xAI will win the AI race'.