Elon Musk has made clear who will own and operate Terafab, the massive chip project his companies are building in Texas, ending uncertainty over its leadership. Tesla shares rose 1% in premarket trading on Friday to $379, with SpaceX shares up 4% after its spectrum deal.

Terafab, backed by Tesla, SpaceX and xAI, is planned as a 100-million-square-foot campus in Grimes County, about 10 times the size of Tesla’s Austin gigafactory and 30 times TSMC’s Arizona fab. The project targets one terawatt of AI computing capacity a year, with chips for Tesla’s Optimus robots, Cybercabs and SpaceX’s space-based data centres.

The initial phase is valued at more than $16.8 billion and could create 3,000 jobs, with total spending across phases reaching up to $119 billion. Intel, which joined in April, will run the fab on its 14A process, while TSMC’s role would be limited to a sublease, Musk indicated.