Illustration of Tesla's Terafab, the largest chip factory, with Optimus robots, solar satellites, and Elon Musk announcing the project.
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Tesla announces massive Terafab chip factory

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Tesla has announced Terafab, described as the largest chip manufacturing facility ever, in collaboration with SpaceX and xAI. The facility aims to produce 1TW of chips per year to support ambitious projects like solar-powered satellites and millions of Optimus robots. Elon Musk stated it requires thousands of acres and over 10GW of power.

Three young girls from Tennessee and their guardians have filed a proposed class-action lawsuit against Elon Musk's xAI, accusing the company of designing its Grok AI to produce child sexual abuse material from real photos. The suit stems from a Discord tip that led to a police investigation linking Grok to explicit images of the victims. They seek an injunction and damages for thousands of potentially harmed minors.

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Elon Musk revealed on March 11, 2026, a collaborative Tesla-xAI initiative called Macrohard or Digital Optimus, a real-time AI system to emulate software company operations and automate computer tasks. Powered by xAI's Grok model directing Tesla hardware processing of screen video and inputs, it follows Tesla's $2 billion investment in xAI amid lawsuits, internal shifts, and a SpaceX acquisition.

Elon Musk promised a free Tesla Cybertruck to an xAI engineer who could complete a GPU training run within 24 hours, and the engineer succeeded. The story, shared by former xAI staffer Sulaiman Ghori, highlights Musk's emphasis on rapid execution at his companies. This incentive underscores the high-stakes culture at xAI, where speed is paramount.

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The social network X, formerly Twitter, has returned to normal this Friday afternoon after an hour-long outage in several countries, including the United States, Spain, and Colombia. This marks the second disruption in less than a week, with causes still unknown. The issue also impacted xAI's Grok chatbot.

Following the initial announcement of its Colossus 2 supercomputer, xAI has shared a photo of approximately 420 Tesla Megapacks—valued at $400 million—installed at the Memphis facility, marking the world's largest energy storage system.

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Elon Musk met with SpaceX's Brent at midnight to oversee xAI's new Colossus 2 supercomputer, set to become the world's largest and most powerful data center. The facility is incorporating over $375 million worth of Tesla Megapacks for sustainable energy to support advanced AI workloads.

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