Elon Musk dropped a billion-dollar bomb on downtown Austin on Saturday, telling a crowd he plans to build a $20 billion "Terafab" chip complex in the city. He framed the project as the engine for his companies' artificial intelligence push and claimed it would "quintuple the current annual output of all types of chips worldwide.

Tesla is gearing up for the launch of its new Terafab chipmaking factory, which the company's CEO Elon Musk has said is pivotal.