Elon Musk Drops Terafab Location & Plans BUT Announces Something BIGGER

Kind: captions Language: en Well, it finally just happened. Tesla, SpaceX, and Elon Musk just dropped the location and plans for the terra fab, but something bigger. And I'm going to show you guys at the end of this because I'm going to go through the plans of all. I mean, this is just so exciting stuff because this thing is ambitious as heck, but you never want to bet against Elon because he's going to do it. I mean, sheesh. This project is massive. This is absolutely massive. And I just want to get down cuz this is a lot of things to go over. So, smash that like button. and hit subscribe if you haven't already. I don't want to waste any more time. I'm so excited. And let's flipping go. Elon says that Terraab, Texas will be the largest and most valuable building on Earth by far. And it will be stunningly beautiful. Tesla posted this and says Terraab will be built in Grims County, Texas. For those of you guys that don't know where that is, it's literally just northwest of Houston. Practically pretty much in the middle of nowhere, but in the middle of everything, which is pretty much where you want to build this thing. But Tesla says that in April we broke ground on our research fab on the north campus of Giga, Texas. The precursor of Terapab. And for those of you guys that don't know what that is, that is a smaller footprint that acts as a pilot line and a research fab to test two nanometer processes technology and manufacturing methodologies before the full scale production, which that's going to be ready in 2027 for production next year. They're building that right now. Both Tesla and SpaceX will need far more chips than current and future global production can supply. This is why we're building the largest chip manufacturing facility ever with the goal of producing over 1 terowatt of compute per year. So, we know it's at least 1 terabot being produced here. Keep that number in mind because we're going to do some maths and the numbers are bonkers. So, we'll get to that later on into this video. The future is built in Texas. Let's just watch the video here. I'll do a little bit of a commentary. It's insane how this thing's going to look like. Literally looks like a sci-fi movie or something like that. So, it starts off with the cyber cab entering the massive airport looking like entrance with the massive terra fab sign with neo beautiful lights. And then when it enters it, we could see I mean we could see the robo van here which is amazing because they're going to be using this into this facility. The fact that it looks like an iroot. If you guys haven't watched that movie, look flipping like iroot. I rewatch that movie again. We got semis and cyberc on the left and stuff. This thing looks like a flipping airport. It's like a it's it's so long. It needs it own road. It's a flipping city. This is massive. This thing's absolutely ridiculous on how big this is going to be. This is going to probably going to take a decade to build. I'm not going to lie. But this is going to be so worth it because, you know, bottlenecks are going to be eliminated. But look at that from flipping bird's eye view, from the sky view. That is flipping beautiful. I like I want to visit this one day. I want to visit many things in Texas one day. But that is one beautiful looking terra. Beautiful looking building. Looks like an airport. But let's move on to the plans because the plans here are actually flipping massive. Shout out to Doge Designer. He lists them all out. Important numbers from Terafab announcement more than $16.8 billion which is the first phase investment from SpaceX and Tesla. Now we know that this thing will cost about at least 119 $120 billion to be built fully. So $17 million as the first phase investment makes sense and that's what they're paying right now. 3,000 plus new jobs expected to be created. $30 million was granted from the Texas Enterprise Fund. 100 million square ft is the planned terrafab size which is about 9.3 million square meters. 10 million square ft that's the size of Tesla's gig Texas factory which is 10 times bigger than that and that factory is the biggest car manufacturing in the world. So this thing is like 10x that which is absolutely massive. More than one terowatt per year targeted terapab compute output. Now again this number is important. We'll come back to it. 0.5 terowatt is the current annual US consumption shown for comparison two which is two times the current US consumption terapab's targeted annual output more than 1 terowatt projected combined chip demand from SpaceX and Tesla which will be equivalent to 1 billion Optimus bots long-term scale in vision for robots doing the work 10 million tons per year targeted mass launch into orbit more than 1 terowatt of solar power required for the orbital compute vision which is ma insane Elon Mus replies back to this and says the jobs number will be much higher over time. That's just the first year or so, which is absolutely flipping nuts. Here's the list of all the jobs being listed for the Terra Fab on Tesla's website. You guys can just read the things are heating up big time, which is massive. But here is a bigger part that I want to talk about here is like we got to get to the numbers, right? As an investor, I want to see what this can produce for Tesla and of course for SpaceX. But the numbers are bonkers. And I, you know, when you when you do the math on this, it makes sense what Elon Musk is saying when it comes to that, yeah, money is not going to matter because the amount of money these these two companies or combined companies, I mean, this this whole project is like the one of the biggest signs that they're going to merge one day, maybe this year or next year, right? I've made made many videos on this writing on the wall. But whether these two companies never merge or do merge, they're going to be cash flowing cash cow machines if that's ever going to continue being a thing. if money is going to be a thing, if energy is going to become the thing, right? Even though I think still money is going to be around for some time, but Elon's saying it won't, but I I wouldn't take his word for that yet. But I know what he's saying. They're going to print a bit boatload of money. Tesla owner Silicon Valley says this. Tesla's Terafab is set to become one of the most ambitious semiconductor projects ever built. Designed to produce over 1 terowatt of AI compute capacity per year. Terrafab will power the future of AI, Optimus, autonomous vehicles, and beyond. Elon Musk replies back with this big bombshell, man. He says, "My very approximate guess is that terrafab AI compute output would be 25% for Tesla Optimus and 75% for AI spacecraft. Now, what can we do with this information? We could do a lot of things with this information." So, I asked Grock to break it down for me. And this is what he or she said or it said, whatever it is, right? So 1 terowatt of AI compute of chips being built 25% of that now that's at least right it could be more but 25% of that we'll go with the 1 terowatt that's obviously 250 gawatt which if we divide it by 250 watts which is what Elon has stated that Tesla can bring the AI5 inference chips power draw to around 250 watts that's about 1 billion in Optimus bots. Now, let's say the year is, I don't know, 2035, right? Because I don't think bots would be I think bots will be being built on mass production in millions by the early 2030s. But 1 billion being produced every year. I don't know about that. That's going to be insane. That's going to be absolutely insane. But let's say that they have enough chips to build 1 billion of that, right? So 1 billion Optimus robots. Multiply that by 20,000 each, right? I'm pretty sure it's going to be 20,000 each. When you can mass scale at that much, that's 20 trillion in revenue. 50% in gross profits. That's 10 trillion. Right now, this is this is gross profits. This could be around 7 to 8 trillion when it comes to operating margin and expenses, all that kind of stuff coming up. But 10 trillion. If we if we just give this a 10 multiple, that's that is flipping 100 trillion company. That's insane. If it's 7 trillion in operating margin, a 10 multiple of that is 70 trillion. Dude, that's a stock price of like 30,000 bucks per share. Like that is absolutely and this is just optimist alone, right? But if you guys think this was bonkers and I I was I was having a little bit ar argument here. I'm like what would the AI compute here be here for SpaceX if if the other 75% of the 1 terowatt is going to be 750 gawatt? So, does that mean SpaceX will one day have 750 gigawatts of AI compute and that could be rented out? Because right now there are three companies, three companies that are paying SpaceX monthly for the AI compute. Enthropic, Google, and the other one I forgot. If we put them all together on a monthly rate, that is $2.3 billion. $2.3 billion. Let's just round that down. Monthly revenue just coming in. That's absolutely nuts. Now, for 1.4 gawatt to 750 gawatt, that's a 535x. Let's say the year is 2040, right? I mean, Elon's talking about that this thing can reach 1 trillion in the next 3 to 4 years because they're increasing compute, which is madness. I mean, if they hit 15 gawatt next year, end of next year, that's already like $200 billion in revenue, which is absolutely nuts. No one's talking about profit here, right? We're just talking about revenue, right? But let's just put it put this as an example. 750 gawatt. You have, you know, AI compute data centers in space and Tesla's just collecting rent. 2.3 billion. Multiply that by 535 times cuz 1.4 gawatt to 750 gawatt. Bro, what even is this number? 1.2 trillion every single month. Even my calculator, bro, is broken. Like what is that? 1.2 trillion a month. Times that by 12. That is 15 trillion revenue. See 20 trillion. I mean that's is insane. And that's not even including Starlink and all the other stuff. Like this is insane. This is m [laughter] that's the power of this, right? That's the power of the AI compute. And that's why Tesla is and SpaceX are trying to make this terra fab. So they're not main issue is that they're not they're vertically integrated. They don't have to rely on bottlenecks and other suppliers if something goes wrong. Everything's an in-house and it's on the mainland of the US. So, there won't be much disruption and there's no security concerns. So, when look at these numbers, man, long-term as as a Tesla and SpaceX investor when we're merged into one company that's called X company, we benefit a lot. We benefit so much. I don't know. That's again, I've made so many videos on that. You guys can check the previous video that I talked about that. But the question is now when will this be made? Because this this is going to take a long time to be made. So I asked Rock, I'm like, "Ro, tell me, man, how long will this take to build?" He says that construction just broke down today in Grims County. Initially, $17 billion phase foundations are starting now. Full multi-phase buildout of this massive scale runs through the early 2030s with the Austin Research precursor targeting volume production 2027. So 2027, that's just that's, you know, precursor, that's the test, but buildout of this massive scale runs through the early 2030s. So this could actually be done end of 2030s. Let's see what happens. So, this is going to take time. This thing this thing takes a long time to be built. I mean, if you look at other, you know, fab companies like TSMC that's building out in and even Samsung that's building out in I think TSMC is building out in Arizona and Samsung in Texas. They have this is going to take years like like this is probably going to take a decade to build. This is a big flipping building and it's not easy to make these rooms for building chips and all that kind of stuff. Samsung and TMC, they're a lot smaller and they're taking four to 5 years to build. So, this could well be at least 10 years to be built. Now, this is Elon Musk and his companies and the way he runs things. His magic could make it a lot shorter and a lot quicker. Never bet against him, but these things are not easy to be built. These guys should have started sooner in my opinion, but this thing is not an easy easy project to do. But that's the that's the announcement and the numbers are bonkers as you guys saw which is just absolutely nuts. But it's obvious guys Tesla and SpaceX merging is is getting very obvious. I mean check out yesterday's video. Yeah. Q2 earnings call for SpaceX pretty much in my opinion put the nail on the head on that. I think it's going to happen sooner or later or it has to happen sometime. I don't think Tesla I don't think Elon wants to do eight earnings call a year in my opinion. Anyways, that's just one reason. There's many other bigger and stronger reasons for that. Check it out, guys. Subscribe. Become our channel member. I'll see you guys in the next one.