AI backlash has come for Elon Musk’s massive Terafab chip factory in Texas Residents of Grimes County, Texas, are protesting SpaceX’s proposed $55 billion Terafab semiconductor facility due to its size, potential environmental impact, and a perceived lack of transparency regarding project details. Despite the local opposition, SpaceX argues the project will stimulate economic growth by creating 1,800 local jobs and contribute to advancements in AI and autonomous technology. The Grimes County Commissioner Court voted to award SpaceX tax abatements and a reinvestment zone designation, but one commissioner voted against it due to insufficient information.

• Residents in Grimes County, Texas, are protesting SpaceX’s proposed Terafab semiconductor facility.
• The project, a joint venture with Tesla and Intel, could cost up to $119 billion and is intended to boost chip supply for AI, autonomous vehicles, and robots.
• Concerns raised by residents include the project’s size, potential environmental impact, and lack of transparency.
• The Grimes County Commissioner Court approved tax abatements and a reinvestment zone designation for SpaceX.
• One commissioner voted against the measure, citing a lack of adequate information.
• SpaceX claims the facility will create 1,800 local jobs and stimulate economic growth.
• The opposition in Grimes County is part of a larger national trend of backlash against AI infrastructure projects like data centers. Continue reading https://www.businessinsider.com/elon-musk-spacex-terafab-chip-factory-texas-opposition-ai-backlash-2026-6