Elon Musk’s ‘Terafab’ AI chip factory

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Good morning, { AI enthusiasts }. Elon Musk already runs the world’s biggest EV factory, the world’s busiest rocket company, and a $100B+ AI startup. Now, he’s adding cutting-edge chip fabrication to the list to tie all of them together.

His latest Terafab project between Tesla, SpaceX, and xAI goals to supply 50x the world’s current global compute per yr, most of it deployed on AI satellites in orbit — in what Musk called step one toward a “galactic civilization.”

In today’s AI rundown:

  • Musk’s latest $25B ‘Terafab’ AI chip project

  • The Rundown Roundtable: Our AI use cases

  • Use Google Stitch to revamp your website

  • Halter’s AI ‘Cowgorithm’ nears $2B valuation

  • 4 latest AI tools, community workflows, and more

LATEST DEVELOPMENTS

TESLA, SPACEX, & XAI

Image source: xAI livestream

The Rundown: Elon Musk just unveiled Terafab, a brand new Tesla-SpaceX-xAI chip facility that goals to supply a terawatt of AI compute per yr, or roughly 50x what your entire world outputs today — calling it “probably the most epic chip constructing exercise in history by far.”

The small print:

  • Musk’s Austin facility would handle logic, memory, packaging, and testing, a vertical integration he said exists nowhere else.

  • Two chip types are planned: one for Tesla vehicles and Optimus robots, one other space-grade chip for solar-powered AI satellites launched via Starship.

  • Musk said “nobody wants AI computing centers of their backyard”, expecting space-based compute to undercut ground costs inside 2-3 years.

  • Musk also pitched the Terafab as step one towards a “galactic civilization”, with a post-scarcity economy that gives “abundance for everybody”.

Why it matters: With the film trending (great flick), it appears like the proper weekend for Elon to pitch considered one of his most sci-fi visions yet. Constructing a fab on this scale from scratch is an unlimited bet, but the necessity for AI chip scaling is an actual one — and Musk has made a profession out of ignoring what the industry says can’t be done.

TOGETHER WITH YOU.COM

The Rundown: Most teams pick a search provider by running just a few test queries and hoping for the most effective—a recipe for hallucinations and unpredictable failures. This technical guide from You.com gives you access to an actual framework to judge AI search and retrieval.

What you’ll get:

  • A four-phase framework for evaluating AI search

  • The way to construct a golden set of queries that predicts real-world performance

  • Metrics and code for measuring accuracy

Go from “looks good” to proven quality. Learn how one can run an eval.

THE RUNDOWN ROUNDTABLE

Image source: Lovart / The Rundown

The Rundown: The Rundown Roundtable is a weekly feature where we poll members of The Rundown staff about how we use AI in our work and day by day lives.

Darren, Director of Media: For a recent video, I needed to animate a visible representation of this ancient board game. Doing that manually in After Effects would’ve taken just a few hours, so as an alternative I described the foundations of the sport to Claude and asked it to generate an interactive SVG animation.

After just a few rounds of tweaking, I used to be capable of screen-record the result, and it worked great for the video.

Jennifer, Tech & Robotics author: When my sixth-grade daughter needs math help, I sometimes feel a bit lost myself. A number of the teaching methods have modified since I used to be a child, and I don’t at all times have time to dig through her textbooks.

So I exploit ChatGPT to walk me through problems step-by-step — in French, since that’s how she learns — so I can actually explain them to her in a way that is smart.

AI TRAINING

The Rundown: On this guide, you’ll learn how one can use Google Stitch to revamp an existing web page by uploading screenshots. It is a very fast method to fix weak layouts, generate higher variations, and create something you possibly can hand off to a developer.

Step-by-step:

  1. Pick a single page in your website that needs improvement. Take a screenshot and think concerning the specifics of what must be modified

  2. Go to Google Stitch, add the screenshot in chat, and prompt: “Improve the layout of this page so the user sees more content and perceives more value. Make the content more accessible and reduce the dead space”

  3. Select the generated page > Generate > Variations > Generate Variations to have 4 latest page concepts. Select the most effective one, and go to More > Export

  4. When you export the design to Figma or download the brand new code, you possibly can rinse and repeat this process with as many pages as you want in the identical canvas

Pro tip: Click Export > AI Studio to construct a live prototype with Google’s vibe coding tool.

PRESENTED BY LOVABLE

The Rundown: Lovable for Slides uses AI to generate stunning slides, scripts, and audio narration — no design skills required. Whether it’s an investor pitch, client proposal, or quarterly review, just describe what you would like, and Lovable handles the remainder.

Key highlights include:

  • Create presentation-ready decks in under 10 minutes with easy prompts

  • Upload existing slides and let AI transform them into polished, skilled formats

  • Auto-generate speaker scripts and audio narration alongside your deck

Try Lovable for Slides and skip the hours of slide formatting.

AI & AGTECH

Image source: Halter

The Rundown: Latest Zealand’s Halter is reportedly nearing a brand new round led by Peter Thiel’s Founder’s Fund that will value the startup at $2B — with its ‘Cowgorithm’ collars using AI in agriculture to trace, herd, and modernize pasture management.

The small print:

  • Halter’s solar-powered collars create virtual fences and let ranchers herd cattle remotely via app using vibration and audio cues.

  • Collars send 6,000+ data points per minute to Halter’s proprietary AI, which it calls the ‘Cowgorithm’, to trace health and optimize grazing.

  • The round would double Halter’s valuation from roughly $1B after a $100M raise last June, with investor demand leaving the deal oversubscribed.

  • Founded on a 300-cow NZ dairy farm, Halter has collected 7B+ hours of animal behavior data and is now expanding into the US market.

Why it matters: A number of the biggest AI unlocks could be coming in industries that haven’t materially modified in centuries. Halter replaces physical fences, manual herd checks, and more with real-time data, a collar, and an app — bringing practical modernization to an old-school process. Plus, ‘Cowgorithm’ is a wonderful name.

QUICK HITS

  • 🧠 Adapt – Slack-native AI in your team. As much as $500 in free credits for brand spanking new users*

  • 🚀 Claude – Now with Cowork Projects, Claude Code channels, and Dispatch

  • ⚙️ Composer 2 Cursor’s powerful, cost-effective coding model

  • 🤖 ASMR – Supermemory’s experimental agent memory system

Cursor revealed that its Composer 2 model was built on top of Kimi K2.5, coming after the corporate faced backlash over failing to incorporate the detail in its release.

Anthropic rolled out Projects in its Claude Cowork, allowing users to import their existing web-based Claude projects or create them to make use of on the desktop app.

The White House released its AI policy blueprint for Congress, aiming to dam states from writing their very own AI laws while keeping federal oversight across existing agencies.

OpenAI is reportedly planning to just about double its workforce from 4,500 to eight,000 by the tip of 2026 amid the corporate’s increasing enterprise AI focus.

A U.S. man pleaded guilty to an AI music fraud that earned him $1.2M/yr by generating fake tracks and inflating their play counts, now facing five years in prison.

COMMUNITY

Every newsletter, we showcase how a reader is using AI to work smarter, save time, or make life easier.

Today’s workflow comes from reader Chris P. in Europe:

“I’m a Senior Manager in the general public sector exploring a move into big tech, but I had no clear sense of how my experience translated or what level to focus on. I began using ChatGPT, Gemini, and Claude as a profession consultant—refining my CV, aligning it to roles, and running mock interviews.

The most important surprise was salary guidance. One role had almost no data online, with Glassdoor estimating around €80k–€100k. ChatGPT suggested €120k–€140k based on my experience. I gave that range as expectation, and the recruiter confirmed the salary was €130k. It’s now my go-to consultant for profession advice.”

How do you utilize AI? Tell us here.

That is it for today!

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