Elon Musk Unveils $25B Terafab Chip Project: Sequoia Partner Declares "xAI Will Win"
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'.
SpaceX Acquires xAI in Blockbuster Merger — Musk Unifies Space + AI + X Into a $1.25T Private Giant to Pursue “Space-Based Data Centers”
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.
SpaceX and xAI in Merger Talks — Elon Musk's Empire Consolidation Could Create an AI-Space Superpower
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.
