Elon Musk wants to build a chip factory so large it makes existing semiconductor fabs look like lemonade stands. Then he wants to launch most of what it produces into space.
The project is called Terafab, and it represents a collaboration between Tesla, SpaceX, and xAI to construct a vertically integrated semiconductor fabrication facility near Austin, Texas. The target: annual production capacity exceeding 1 terawatt of AI compute power, roughly 50 times the current global output.
Initial cost estimates sat between $20 billion and $25 billion, but more recent regulatory filings have revised the figure upward to approximately $119 billion.
What Terafab actually involves
The facility is planned to span approximately 100 million square feet. For context, that’s nearly four times the size of the Pentagon, which is already the world’s largest office building by floor area.
