SpaceX Reportedly Adds In-House AI Chip Production to Spending Plans

SpaceX is extending its vertical integration into chips to secure the computing power needed for rockets, Starlink and orbital AI data centers. The company is working with xAI and Tesla on Terafab in an effort to control the design, manufacturing and packaging of AI processors. Its S-1 filing with the U.S. Securities and Exchange Commission also acknowledged that most of its direct chip suppliers lack long-term contracts, making in-house GPU production important for supply stability and cost control.

Reuters reported on April 23, 2026, that SpaceX had included production of its own GPUs under “significant capital expenditures” in the S-1, without disclosing a budget, production timeline or manufacturing partners. Documents from Grimes County, Texas, released on May 6 showed that the first phase of Terafab is expected to involve a $55 billion investment. Total investment could reach $119 billion once all subsequent phases are completed, though the company warned there was no guarantee the project would stay on schedule or meet its targets.