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'.

The 2026 AI funding landscape has shattered all records, with OpenAI leading the pack at $174B+ total funding following its massive $110B February round. xAI secured $20B in January's upsized Series E, while Anthropic reached $69.2B total after its $30B Series G at $380B valuation. February 2026 became the biggest month in venture capital history with $189B global funding, of which $171B went to AI startups. Figure AI ($3.2B+) and Perplexity ($2.6B+) round out the top five, as AI startups captured over 90% of venture funding in the record-breaking month.

Elon Musk’s SpaceX has officially acquired/merged with xAI, consolidating Musk’s two largest private businesses into a single mega‑company that also encompasses X (formerly Twitter), which xAI previously acquired in 2025. Multiple outlets report the tie‑up values SpaceX at ~$1T and xAI at ~$250B, for a combined valuation around $1.25T. Musk and SpaceX frame the rationale around an ambitious plan to build space-based AI data centers to address power and cooling constraints on Earth—an idea he has been promoting more aggressively in recent months.

Reports have emerged that SpaceX and xAI are in discussions about a potential merger, a move that would unite Elon Musk's space exploration giant with his ambitious AI venture. The proposed combination could create unprecedented synergies between satellite infrastructure and artificial intelligence, while consolidating Musk's corporate empire into an even more formidable force in the technology landscape.

Elon Musk's xAI has announced the restart of the Dojo3 supercomputer project, signaling an ambitious push to build one of the world's most powerful AI training infrastructures. This strategic move combines Tesla's Dojo legacy with xAI's frontier AI ambitions, positioning the company to compete with OpenAI, Google, and Meta in the compute arms race.

Tesla has officially launched fully autonomous Robotaxi operations in Austin, Texas, marking the company's first "truly driverless" commercial service without safety drivers. This historic milestone positions Tesla as a direct competitor to Waymo and signals a new era in autonomous transportation.

Elon Musk has filed a lawsuit against OpenAI and Microsoft, seeking damages between $79 billion and $134 billion. He alleges that OpenAI abandoned its original non-profit mission to benefit humanity after forming a deep partnership with Microsoft for profit, constituting "fraud" and "unjust enrichment" from his foundational contributions. A jury trial is set for April 2026.