AUSTIN, Texas — Billionaire Elon Musk announced plans to build a chip-manufacturing facility during a weekend presentation in Austin.
During a livestream on Saturday, Musk said the Terafab project would be a collaboration between his companies Tesla, SpaceX and xAI. The name comes from the project’s goal of producing one terawatt of computing annually.
Musk said the project is the “most epic chip building exercised in history, by far.” Tesla called it the “largest chip manufacturing facility ever.”
Part of the Terafab project is the building of an advanced technology fabrication plant in Austin near the Tesla Gigafactory. He said the plant will be used to iterate on chip designs.
Texas Gov. Greg Abbott posted about the news on Musk’s social media platform X.
“Thanks Elon. Extraordinary event tonight,” Abbott wrote in the post. “Your vision is powerful and we are proud of all you do in Texas.”
The full Terafab project is estimated to cost $20 billion, and the location of the massive facility has not been announced.
Musk clarified on X after the presentation that the Terafab would need to be approximately 100 million square feet and that “several locations for Terafab are under consideration. Its needs thousands of acres and over 10GW of power at full scale.”