Musk Says Terafab Could Cost $1 Trillion, With Spending Planned in Phases

Business · First reported 7 Nov, 17:15 · Updated 17:22

Image: Wikimedia Commons · NASA Johnson Space Center · Public domain

Elon Musk agreed with investor Ron Baron’s estimate that Terafab, a planned Tesla and SpaceX chip venture, could cost $1 trillion over time, while saying spending would occur in phases. The project has a stated first-phase estimate of more than $16.8 billion; Musk has described test-chip and volume-production targets, but the companies have not specified which shareholders would fund later phases.

At the November 6, 2026 Baron Investment Conference, Musk said Terafab could cost $1 trillion over time, with spending in phases.
Musk targeted a first SRAM test chip around May or June 2027 and volume production in the third quarter of 2028, while describing the schedule as very aggressive.
The only official cost estimate reported is more than $16.8 billion for the first phase at Gibbons Creek, Texas; who would pay for later phases remains unclear.

Summary written by Lux AI from 2 articles

Key facts

Long-term cost estimate: $1 trillion, an estimate Musk said the project could reach over time.
Official first-phase estimate: More than $16.8 billion for the Gibbons Creek, Texas phase.
First test chip target: Around May or June 2027.
Volume production target: Third quarter of 2028.
Stated annual output goal: One terawatt of AI chips.