"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."
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
SpaceX proposed initially investing $55 billion into Terafab, which could increase to $119 billion, according to a May filing.
In April, Tesla broke ground on a research facility at the North Campus of its Giga Texas plant, which it called a precursor to Terafab.
The Pentagon is the current largest building in the U.S. at 6.6. million square feet, and China's New Century Global Center in Chengdu, is the world's largest at 18.9 million square feet.
Reuters contributed to this report. Original article source: SpaceX and Tesla choose Texas for AI chip manufacturing plant that will be world's largest building https://finance.yahoo.com/technology/ai/articles/spacex-tesla-choose-texas-ai-005224274.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAADf29lOLP9C5p3_xqZKOqCOJVecyiLkzrrvx6QDj5VzkoyuG1GeMEsEwuczeZYvJh9Q5qyrBPfpWcsWZeZAYytbPV-QZ2nDcy32gPeAZzSrCxkClnvz78yUvi1_tl1Z1MuKmPG9UQMabrthnAhUpm0zTDcM7hU2JJRFH46cTeOrg
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