SpaceX and Tesla choose Texas for AI chip manufacturing plant that will be world's largest building - Fox Business

SpaceX announced this week that its planned semiconductor plant that is expected to become the largest building in the world at more than 100 million square feet will be built in Grimes, Texas, outside of Houston. "Terafab Texas will be the largest and most valuable building on Earth by far," owner Elon Musk wrote X Thursday. "And it will be stunningly beautiful." The factory is a joint effort with Musk’s electric car company, Tesla. "This facility will house the manufacturing, packaging and testing of advanced logic and memory devices," SpaceX said in a press release Thursday. "Terafab will produce chips optimized for edge computing and inference for use in hardware like Tesla’s Optimus robots and self-driving Cybercabs, along with high-power chips designed for operating SpaceX’s space-based data centers." MARKET EXPERT MAKES CASE FOR SPACEX DESPITE VOLATILITY SpaceX added that its and Tesla’s combined demand for chips is expected to be in excess of the global supply. "While we are deeply appreciative of our current chip suppliers and encourage them to expand production whenever possible, this looming gulf between supply and demand is at the core of Terafab’s necessity," SpaceX explained. The company said Terafab would employ more than 3,000 people, adding that its initial phase is estimated to cost approximately $16.8 billion. TEXAS GOV. GREG ABBOTT EFFECTIVELY PAUSES NEW DATA CENTER PROJECTS PENDING STATEWIDE GRID AUDIT "The Terafab is bringing cutting-edge manufacturing to America, creating thousands of high-paying jobs in the Lone Star State and enabling us to produce AI chips at scale for use on Earth and in space," Musk said. SpaceX proposed initially investing $55 billion into Terafab, which could increase to $119 billion, according to a May filing.