SpaceX files for a $55bn Texas semiconductor fab, with combined chipmaking investment reaching $119bn — 2026-05-06

## Short Segments Google's Gemma 4 AI models are now three times faster thanks to a new predictive technology. The latest update introduces Multi-Token Prediction, which allows the models to anticipate future tokens, significantly speeding up AI processing. This advancement is part of Google's push to enhance local AI capabilities, enabling users to run powerful AI models on their own hardware without relying on cloud services. The change not only boosts performance but also aligns with Google's shift to a more permissive Apache 2.0 license, encouraging broader adoption and experimentation. This means developers can now harness AI power more efficiently on consumer devices, potentially transforming how AI applications are built and deployed. Google DeepMind is partnering with EVE Online to test AI models in complex gaming environments. DeepMind has taken a minority stake in the developer of EVE Online, now rebranded as Fenris Creations, to explore AI in dynamic, player-driven systems. The collaboration will use an offline version of the game to conduct controlled experiments, aiming to advance AI capabilities in long-term planning and learning. This partnership highlights the growing trend of using video games as testing grounds for AI research, offering a rich environment for developing sophisticated AI systems without affecting the live gaming experience. Chrome is reportedly downloading a 4GB AI file without user consent, raising privacy concerns. Researchers have discovered that Google's browser may automatically download a large file named weights.bin, linked to AI features, without clear user opt-in. While users can disable or remove these local models, the automatic download process lacks transparency, prompting calls for clearer documentation and user control. This development underscores the ongoing debate over user privacy and data management in the age of AI, as companies integrate more AI-driven features into everyday software. Hut 8 has signed a $9.8 billion lease for the first phase of its Texas AI data center, marking a major shift from Bitcoin mining to AI infrastructure. The 15-year lease at Beacon Point expands Hut 8's AI capacity to 597 MW, with the potential to reach $25.1 billion in value if all renewal options are exercised. This move demonstrates Hut 8's successful pivot to becoming a key player in the AI data center market, leveraging its power-first development model to attract high-investment-grade tenants. The transformation highlights the rapid evolution of tech companies adapting to new market demands. ## Feature Story SpaceX is making a bold move into semiconductor manufacturing with a proposed $55 billion investment in a Texas chip fab. The Terafab project, as it's called, could expand to a $119 billion investment, positioning SpaceX as a major player in the chipmaking industry. This development comes as SpaceX files for a property tax abatement in Grimes County, Texas, signaling its commitment to establishing a significant semiconductor footprint. The facility aims to secure in-house access to advanced chips, crucial for SpaceX and Tesla's future technologies. The scale of the Terafab project is unprecedented, dwarfing initial estimates and highlighting Elon Musk's ambition to control the supply chain for AI chips. Analysts note that while the initial $55 billion investment is substantial, the full scope of the project could require even greater financial resources. The collaboration with Tesla underscores the strategic importance of this venture, as both companies seek to reduce reliance on external suppliers and enhance their technological capabilities. As SpaceX moves forward with this ambitious plan, the implications for the semiconductor industry are significant. The Terafab project could reshape the competitive landscape, challenging established players and potentially driving innovation in chip manufacturing. Observers will be watching closely for further details on the project's timeline and technological specifications, as well as the outcome of the upcoming tax-break vote in June. This initiative not only marks a new chapter for SpaceX but also signals a broader trend of tech giants investing heavily in semiconductor infrastructure to secure their technological futures.