SpaceX dropped two bombshells in the same week. On Wednesday, it filed plans for a $55 billion semiconductor factory in Texas called Terafab. And its IPO prospectus is expected to go public within the next two weeks.
May 6, 2026
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Together, these moves turn SpaceX from a rocket company into something much larger: a vertically integrated AI and hardware conglomerate aiming to raise $75 billion in the biggest IPO in history.
Terafab is a joint venture between SpaceX, Tesla, and xAI (the AI company SpaceX acquired in February). The goal: build chips in-house instead of relying on outside suppliers.
The numbers are staggering. The initial investment is $55 billion. If all phases are completed, total spending could reach $119 billion. The facility would cover roughly 100 million square feet in Grimes County, Texas, and require over 10 gigawatts of power at full scale.
The target: one terawatt of computing output per year using 2-nanometer chip technology. That's the same cutting-edge process that Taiwan's TSMC is racing to perfect. Pilot production is targeted for late 2026, with full operations by 2027, though Morgan Stanley thinks real chip output won't happen until mid-2028 at the earliest.
Every major player in AI is fighting for chip supply. Nvidia dominates the GPU market. Broadcom builds custom chips for cloud giants. Musk's bet is that building his own factory gives Tesla, SpaceX, and xAI a guaranteed supply line that competitors can't cut off.
The chips would power Tesla's self-driving systems, humanoid robots, and xAI's data centers. If Musk can pull it off, he eliminates one of the biggest bottlenecks in all of tech.
That's a huge "if." Building a cutting-edge chip factory from scratch is one of the hardest things in manufacturing. Intel has spent tens of billions trying to catch TSMC and is still behind. But Musk has a history of doing things everyone said couldn't be done.
SpaceX's public prospectus filing is expected between May 15 and May 22. The IPO roadshow is set to begin the week of June 8, with a major retail investor event on June 11 for around 1,500 attendees.
If the roadshow follows a typical timeline, shares could start trading between June 18 and June 30. SpaceX is targeting a $1.75 trillion valuation, which would make it the most valuable IPO listing ever by a wide margin.
Musk has said he wants up to 30% of shares allocated to retail investors. That's unusual for an IPO this size and would give everyday investors a rare shot at getting in on day one.
The $75 billion SpaceX aims to raise will create a spending spree. Index funds are already adjusting their rules for inclusion. The IPO could pull capital from other tech names as investors rotate into SpaceX. Watch for selling pressure in names like Amazon and Alphabet as big money makes room.
On the chip side, Terafab could pressure Intel and TSMC over time. But that's a 2028 story at best. For now, the IPO is what matters.
SpaceX is positioning itself as more than a rocket company. The Terafab filing signals that Musk is building a self-contained tech empire spanning AI, chips, electric vehicles, and space. The IPO will price all of that for the first time.
Mark the next two weeks. The prospectus will reveal exactly how SpaceX makes money, how much Starlink contributes, and how they plan to spend $75 billion. That document will be the most-read filing of the year.