It's actual corruption and the standard fascist model of corporate takeover by the state.
The "integration" of SpaceX/xAI is just standard Musk-move-losses-to-the-company-making-money-at-the-moment bullshit.
Apple actually have the runs on the board, xAI has Musk-BS.
The initial investment in chip fabs is so big it can't be justified when the established players already make enough to satisfy demand, but right now they don't so there's an opportunity.
It's still risky for sure but it makes some sense that it happens now. Hyperscalers spend 100s of billions yearly, at some point the amount given to TSMC gets larger than starting your own fab.
If success was guaranteed (it's not, as AMD and several others have learned) I think many more co's would start their own fabs in the current market.
As for why xAI, well why not - many of the others who can afford a fabbing attempt can't risk getting on TSMC's bad side even for a year or two.
Operating a FAB requires employing PhDs that are willing to work 8 hours shifts with no breaks (each removal of a bunnysuit is an expensive exercise), and there’s no reason to believe SpaceX is capable of hiring such people.
Reusable rockets likely got the same ridicule, as did fast satellite internet, self driving and fully electric vehicles.
I can understand that Musk does not have the most palatable personality, but floating ideas and at least attempting innovation regardless of outcome over a long time is a net positive for society and should not be discouraged.
