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Elon Musk's Terafab chip factory in Texas could cost up to $119 billion, filing shows

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Elon Musk arrives at the federal courthouse during proceedings in the trial over his lawsuit against OpenAI in Oakland, California, on April 30, 2026. Josh Edelson | Afp | Getty Images Elon Musk's plans for a huge chip manufacturing plant in East Texas will cost at least $55 billion for the first phase, and up to $119 billion if the full buildout comes to fruition. The estimated capital investment amounts were disclosed in a public hearing notice on Wednesday in Grimes County, Texas, home of the prospective facility. The notice said SpaceX, which is controlled by Musk, is seeking a property tax abatement agreement from the county. Grimes County will hold a public hearing on June 3, to consider the proposed tax breaks. Musk, who's also CEO of Tesla , is aiming for Terafab to be the "most epic chip-building effort ever - combining logic, memory and advanced packaging under one roof," according to a post on X last month from SpaceX, which now owns artificial intelligence company xAI.…

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