01Tesla × SpaceX × xAI
TERAFAB
The fab to end all fabs.
02Origin
“We either build the Terafab or we don’t have the chips.”
NOV 2025
A gigantic chip fab
floated at Tesla’s annual meeting.
JAN 2026
We are going to have to build a Tesla TeraFab
— Q4 earnings call.
MAR 2026
Announced in Austin, with SpaceX.
AUG 2026
Grimes County confirmed. $16.8B initial investment.
03The site
The largest and most valuable building on Earth by far.
Outside Houston — 100M+ sq ft of planned manufacturing space.
30.55°N · 95.98°W
04The scale
How big is 100 million square feet?
Empire State2.8M sq ft
Pentagon6.6M sq ft
Gigafactory Texas~10M sq ft
Terafab · planned100M+ sq ft
Blocks scaled by √floor area for visibility
05The flow
Vertical integration, under one roof.
Every wafer runs the whole line without leaving the complex.
06The split
Two fabs. Two chips.
Edge
Optimus, Cybercab, the robotaxi fleet.
Orbital
Space-based AI data centers.
Goal: one terawatt of compute per year.
Today’s global output covers ~3% of what Musk’s companies expect to need.
07The numbers
$16.8B
Initial
investment
investment
$119B
Up to,
multi-phase
multi-phase
100M+ sq ft
Planned
floor area
floor area
3,000+
Jobs
1TW / yr
Compute
target
target