Tesla and SpaceX’s xAI Terafab project has started actively procuring chipmaking equipment by reaching out to major suppliers like Applied Materials, Tokyo Electron, and Lam Research. The project aims to achieve one terawatt of annual AI compute output and has received support from Intel as a foundry partner. Samsung declined to join but offered additional production capacity at its Texas facility. The project targets silicon chip manufacturing to begin by 2029, with significant implications for the crypto market.

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