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Tesla and SpaceX will invest $16.8B to start building ‘Terafab’ chip factory in Texas

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Tesla and SpaceX said Thursday that “Terafab,” the advanced chip factory they are jointly developing, will be built in Grimes County, Texas, outside Houston, and that they will make an initial investment of $16.8 billion in the project.

The factory will be “the largest and most valuable building on Earth by far,” Elon Musk, CEO of both companies, wrote in a post on Thursday. More than 100 million square feet of manufacturing space is planned for the facility, according to SpaceX.

The companies say the facility will employ at least 3,000 people from Grimes and nearby Brazos County.

“The facility will be an advanced semiconductor fab that will bridge the divide between current global chip supply and the compute demand of the future,” a post on SpaceX’s website reads.

The animus behind Terafab is that Musk’s vision of the future — one where millions of robots take over human jobs, robotaxis do all the driving, and satellites become data centers for AI training and inference — requires a phenomenal amount of computing power, far more than what current production rates support.

SpaceX alone has suggested in filings that it may spend as much as $119 billion on the project across a “multi-phase” construction plan — although the company didn’t talk about Terafab at all on its first earnings call earlier this week.

Intel has said it will contribute to the Terafab project, although it’s been cagey about its exact contributions.

“Terafab will be epic in both its mission and in its sheer size, designed to build new compute at an unprecedented scale and speed. A vertically integrated factory with more than 100 million square feet of manufacturing space is planned. This facility will house the manufacturing, packaging, and testing of advanced logic and memory devices,” SpaceX writes on its website.

“Bringing these aspects together in one location will enable fast, recursive improvements and accelerate new compute deployed. Terafab will produce chips optimized for edge computing and inference for use in hardware like Tesla’s Optimus robots and self-driving Cybercabs, along with high-power chips designed for operating SpaceX’s space-based data centers,” the company wrote.

SpaceX said in its post that it is “committing to the use of” water from the local Gibbons Creek Reservoir instead of local groundwater.

The announcement followed a heavily-attended county meeting on Wednesday where hundreds of residents attended and raised concerns about millions of dollars in tax breaks awarded to the project, as well as a lack of transparency.

“We believe this agreement will strengthen our district, expand opportunities, and better prepare our students for their future,” Anderson-Shiro Consolidated Independent School District Superintendent Dr. Sarah Borowicz said in a statement released by the Texas Governor’s office. “There are defining moments in the life of a school district, and this is one of those moments. Our commitment now is to ensure that every opportunity created through this agreement is managed wisely, transparently, and always with students at the center of every decision.”

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ChatGPT Atlas Shuts Down Aug. 9: What Users Must Save Before Migrating

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OpenAI’s ChatGPT Atlas browser is scheduled to stop working on Aug. 9, 2026, leaving users little time to preserve browser data and test a replacement. Bookmarks will not transfer automatically, while open tabs and browsing history may not carry over.

The shutdown affects individuals who use Atlas for research and agentic browsing, along with IT teams responsible for managed devices and approved AI tools. OpenAI is moving browser-based agentic capabilities into ChatGPT and Codex, but organizations should verify data, permissions, and essential workflows before uninstalling Atlas.

Preserve browser data before the deadline

Under OpenAI’s Atlas migration guidance, users should export bookmarks as an HTML file and import them into another browser. Important tabs and pages from browsing history should also be bookmarked or recorded separately.

Atlas will provide cookie-export options where available, but cookie and session files should be treated as sensitive because they may provide access to authenticated accounts. Cookies and active sessions cannot be imported directly into another browser, so users should expect to sign in again and complete multifactor authentication.

ChatGPT conversations are separate from Atlas browser data and should remain accessible, subject to the user’s plan, workspace settings, and account access.

IT teams should identify Atlas installations, tell affected users to preserve necessary data, confirm that replacement tools are enabled for the correct workspace, and update internal documentation. Atlas should be removed only after those checks are complete.

AI browser migrations also require a security review. Recent BioShocking research involving AI browsers showed how malicious web content could trick browsing agents into exposing credentials when they had access to logged-in accounts. Teams should limit agent access to the accounts and pages required for each task.

Test the replacement against real work

OpenAI recommends the ChatGPT desktop app for deeper browser-based agentic work and its Chrome extension or sidebar for help within Chrome. Availability may vary by plan, region, device, browser, and workspace settings.

The desktop app supports multiple tabs, downloads, improved navigation, and account logins where available. OpenAI’s July 16 desktop update also brought existing Projects into the app and enabled users to begin Chat or Work threads with Project context. Cloud Work conversations sync across web, mobile, and desktop; locally stored conversations remain on the computer where they were created.

Those features do not guarantee that every Atlas workflow will transfer unchanged. A workflow owner should sign in to the correct workspace, open an existing Project, confirm that prior conversations and files are present, and complete a representative task before deployment.

Permissions deserve the same scrutiny. Recent enterprise AI-agent security disclosures have exposed a recurring problem: agents can receive broad user permissions without equivalent runtime oversight. The recommended security checks for ChatGPT Work include reviewing connected applications, approval requirements, and visibility into agent activity.

IT should document missing data, unsupported actions, login failures, and permission changes before approving the replacement. A verified export, successful workflow test, and controlled removal will reduce disruption when Atlas stops working.

Read more: A separate Claude for Chrome security flaw showed how rogue extensions could trigger actions involving Gmail, Google Docs, and Google Calendar, reinforcing the need to review extension permissions after migration.

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OpenAI says Apple’s own security practices undermine its trade secrets case

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OpenAI’s motion to dismiss Apple’s trade secrets lawsuit, along with newly filed exhibits, reveals the company’s legal defense strategy. Rather than focusing on whether former Apple employees working at OpenAI had accessed certain information, the AI company argues that Apple’s own security practices and offboarding procedures weaken its claim that the information qualifies as legally protected “trade secrets.”

Apple’s complaint, filed in July, accuses OpenAI of orchestrating a scheme to obtain confidential hardware information from former Apple engineers. This week, Apple asked the court to expedite discovery, saying its internal investigation indicates some additional former employees may have participated in, or witnessed, the alleged theft of trade secrets.

In its motion, OpenAI argues that Apple allowed employees to use personal iCloud accounts for work and failed to properly revoke access after they left the company. It also submitted text message records showing that an Apple manager remained logged into the personal iCloud account of defendant and former Apple engineer Chang Liu after he left the company to transfer files, and later asked him for help with technical questions about Apple projects.

OpenAI also accuses Apple of omitting the consequences of its own “inexplicable information-management practices” from its original complaint, noting that the company failed to properly secure its systems when employees departed, creating confusion and unwanted access issues that Apple now characterizes as theft.

While this may sound a bit like a “the door was unlocked, so it wasn’t really stealing!” defense, this argument is meant to strengthen OpenAI’s argument that former Apple employees were simply trying to assist their prior colleagues. It could also help push the narrative that these weren’t truly trade secrets if they weren’t secured as such.

OpenAI argues Apple hasn’t specified which “trade secrets” or confidential components were allegedly stolen, referring to them instead as “generic categories of the product-development process—such as component manufacturing, product testing, vendor and supplier relationships, and distribution channels.”

OpenAI’s filing posits that Apple is using this lawsuit to slow down its competitor from innovating in AI-powered hardware, rather than focusing on its own product plans.

“OpenAI has no use, need or desire for Apple’s trade secrets,” the motion argues. “OpenAI is building something entirely new and different from anything at Apple. OpenAI does have an interest in hiring the best engineers, inventors, developers and creators—many of whom have decided to leave Apple and to come to OpenAI, attracted by the innovative and exciting work the company is doing. Apple might not like that,” it reads.

“…Apple should not be permitted to use a baseless and pretextual lawsuit to make up for its
shortcomings in the market for talent and retaining its employees, and its failures to integrate AI into its products,” the motion says.

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eBay continues to bet on live shopping after record quarter

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As eBay tries to keep up with competitors like Whatnot and TikTok Shop, the online marketplace is making a bigger push into live shopping after seeing record results. 

During its second-quarter earnings call on Wednesday, the company noted that eBay Live’s gross merchandise volume (GMV) jumped about 8 times year-over-year across seven markets, along with increases in viewers, watch time, and items sold. It plans to expand eBay Live to more international markets in the coming weeks and months.

“These results reinforce our confidence that Live can deepen engagement, broaden discovery, and increase velocity across the broader eBay marketplace,” CEO Jamie Iannone told investors. 

However, it’s important to note that eBay didn’t share the exact GMV number, making it difficult to assess how significant the growth is. 

That said, eBay clearly sees Live as a key growth area, and the feedback from sellers and buyers looks promising. eBay reports that over 90% of sellers who stream regularly have seen their GMV grow, and those who use Live sell about three times more than those who don’t. 

Buyers are also spending more. First-time shoppers in the collectibles category are dropping around 70% more than their non-Live shopping counterparts.

eBay first launched Live as invite-only in the U.S. in 2022, then expanded internationally, starting with a beta in the UK in 2024, and it has since rolled it out in countries like Germany, Australia, France, Italy, and Canada. 

Last month, the company moved past its invite-only model and now offers self-service onboarding for eligible sellers in over 300 categories, which include everything from electronics to fashion and collectibles. 

The company also pointed to recent product improvements, including discovery features across its homepage and mobile app to make live events easier to find. Iannone added that eBay also simplified event creation, inventory preparation, and live item management for sellers, while improving “bidding responsiveness” to create smoother, faster livestreams.

The growth comes as live shopping in the U.S. moves beyond a niche trend, with more companies beginning to treat it more seriously rather than a side experiment. Even resale giant StockX recently introduced live shopping capabilities. Whatnot continues to find success, with a valuation of more than $11 billion. Additionally, TikTok Shop is reportedly testing a paid membership that offers free shipping and exclusive discounts.

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