Elon Musk's SpaceX is set to build a colossal 'Terafab' chip plant in Austin, Texas, with plans to invest at least $55 billion. The ambitious project could eventually cost up to $119 billion and aims to produce enough chips for up to 200 gigawatts of computing power on Earth and one terawatt in space.

Musk has stated the AI chip factory will serve SpaceX's internal needs, including powering AI, robotics, and space-based data centers. The plant will also benefit from Intel’s collaboration in designing and building Terafab to achieve its goals by 2031 of producing one terawatt of compute per year.

SpaceX is expanding its data center footprint on Earth as well, operating a 'Colossus' facility in Memphis, Tennessee. This move signals the company's intention to dominate both space and ground AI technology sectors, possibly reshaping the future of computing and artificial intelligence.

The project raises questions about SpaceX’s long-term strategy and the environmental impact of such an energy-intensive operation. With Musk’s past ventures often criticized for their cost and feasibility, this $119 billion gamble could either revolutionize the tech industry or become another chapter in his ambitious but risky saga.