- Elon Musk outlined Terafab’s massive scale, saying the Texas semiconductor complex will be 50 times the size of the Pentagon and support over one terawatt of compute demand.
- The first phase requires $16.8 billion, spans over 100 million square feet, and will create at least 3,000 jobs, with Musk noting that figure represents only the first of 10 phases.
- About 25% of Terafab’s AI compute could power Optimus humanoid robots, with 75% allocated to AI spacecraft for SpaceX.
Elon Musk detailed Terafab’s massive scale, saying the completed Texas semiconductor complex would be 50 times the Pentagon’s size and support over one terawatt of compute demand. SpaceX and Tesla confirmed on Thursday that the facility will be built in Grimes County, Texas. The first phase requires $16.8 billion in investment, spans over 100 million square feet, and will create at least 3,000 jobs. Musk called Terafab “the largest and most valuable building on Earth by far” on X, adding that it would be “stunningly beautiful.” The complex will produce inference chips for Optimus robots and self-driving Cybercabs, alongside processors for SpaceX space-based data centers. Musk explained on X that Terafab’s AI compute output would be roughly 25% for Optimus and 75% for AI spacecraft. He also endorsed the prospect of building a Terafab on the moon and responded on X with “FEL FTW” to speculation about using free-electron laser technology. The first 3,000 jobs represent only the beginning, as Musk said on X that figure is just for phase 1 of 10, and the number will be much higher over time. The project deepens Musk’s presence in Texas, where SpaceX said its operations have generated more than 56,000 direct and indirect jobs since 2024. Intel joined Terafab as a partner in April, offering expertise in chip design and packaging. However, Moor Insights & Strategy Chief Analyst Patrick Moorhead said on X that its precise role remains uncertain without detailed regulatory filings. “I’m bullish on Terafab,” Moorhead said, but added that without those disclosures, it is unclear what Intel’s role will be. On Stocktwits, retail sentiment for TSLA has been ‘neutral’ over the past week amid a 26% decline in message volumes. One user said the headline is massive, but the real question is whether the wafers actually ship. So far this year, Tesla’s stock has lagged its peers, making it the group’s worst performer, down about 29%.
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