"Musk's initial estimates for the Terafab plant could tie for the sixth most expensive building in the world, with costs potentially reaching $25 billion."
"Morgan Stanley estimates the total cost for a chip factory of that size could easily cost $20 billion more than Musk's early estimates, somewhere in the $35 to $45 billion range."
"Musk has no experience leading a chip company and has a history of flubbing hardware ventures in their early days, raising concerns about the project's feasibility."
"Musk states, 'We either build the Terafab or we don't have the chips, and we need the chips, so we build the Terafab.'"
Elon Musk announced the Terafab chip factory, a joint venture among SpaceX, Tesla, and xAI. Initial cost estimates range from $20 to $25 billion, but Morgan Stanley suggests actual costs could reach $35 to $45 billion. If built, Terafab would surpass the Giga Texas facility, potentially becoming the largest chip plant globally. Musk's lack of experience in chip manufacturing raises concerns about the feasibility of the project. He insists on proceeding, stating the necessity of building Terafab to secure chip supply.
Read at Futurism
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