Elon Musk's TeraFab has been announced, and the first employees are now being hired. But can this venture scale to all of its terawatt glory? Or will it just help Tesla, SpaceX, and xAI land additional chips they cannot get from regular partners?

To build 1 TW of AI silicon per year, Elon Musk's TeraFab would need to process 22.4 million Rubin Ultra GPU wafers, 2.716 million Vera CPU wafers, and 15.824 million HBM4E wafers annually using from 142 to 358 fabs, according to Bernstein.