Elon Musk to build 'world's largest building' AI chip factory in Texas

Elon Musk's SpaceX has announced plans to construct a colossal semiconductor factory in Grimes, Texas, projected to become the largest building on Earth. The facility, dubbed "Terafab Texas," will span over 100 million square feet and is a joint venture with Musk's electric vehicle company, Tesla.

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Terafab Texas will be the largest and most valuable building on Earth, by far.

Musk described the facility on X as "by far the largest and most valuable building on Earth." The Terafab will be responsible for the production, packaging, and testing of advanced logic and memory chips. These chips are intended for use in Tesla's Optimus robots and Cybercab self-driving vehicles, as well as high-power chips designed for SpaceX's space-based data centers.

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And this building will be incredibly beautiful.

SpaceX stated that the combined chip demand from SpaceX and Tesla is expected to surpass global supply. "We deeply appreciate our current chip suppliers and encourage them to increase production whenever possible. However, the growing gap between supply and demand is the core of the need to build Terafab," the company explained in a press release.

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The facility will be used to produce, package, and test advanced logic and memory devices.

The project is estimated to cost around $16.8 billion for the initial construction phase and is expected to create more than 3,000 high-paying jobs in Texas. Musk highlighted that Terafab will bring "cutting-edge manufacturing to America" and enable large-scale AI chip production for both terrestrial and space applications.

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We deeply appreciate our current chip suppliers and encourage them to increase production whenever possible. However, the growing gap between supply and demand is the core of the need to build Terafab.