Elon Musk's Terafab is here: What it is, and why it's important for Tesla and SpaceX

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• Terafab is the most epic chip-building exercise in history by far

  60% confidence

• Giga Texas alone is expected to have capacity for 10 million humanoid robots per year, which would require 20 million chips — approximately six times Tesla's current chip demand for its entire auto business

  60% confidence

• Chipmakers like TSMC and Samsung aren't making chips fast enough for his companies' AI and robotics needs

  60% confidence

• Goal is to produce more than a terawatt — 1 trillion watts — of AI computing power per year, with most of that capacity ultimately destined for space

  60% confidence

• Current AI compute output is roughly 20 gigawatts per year and the rest of the world's output is about 2% of what his companies need

  60% confidence

• Chipmakers' expansion rate is much less than what Musk's companies would like

  60% confidence

• We either build the Terafab or we don't have the chips, and we need the chips, so we build the Terafab

  60% confidence

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