"THEY NEVER LEARN" – Elon Musk’s $25B Terafab Shuts Down the Skeptics
Description
Elon Musk has just unveiled "Terafab"—a massive, 100-million-square-foot semiconductor facility in Austin, Texas, that aims to produce more compute than the rest of the world combined.
While critics and "eighth-grade level" investors claim that leading-edge 2nm fabrication is "impossible" for a newcomer, Sequoia’s Shaun Maguire argues that history is about to repeat itself. From reusable rockets to Starlink, the experts have a 0% success rate at betting against Musk’s vertical integration.
In this deep dive, we explore:
The Terafab Reveal: Why Tesla, SpaceX, and xAI (now merged with SpaceX) are building a single roof for design, lithography, and packaging.
The SpaceX IPO Factor: How the rumored June listing at a $1.75T valuation is providing the "potential energy" for this $25B bet.
Vertical Integration 2.0: Why Musk is abandoning the "Gateway" orbital station strategy to focus on surface-based lunar and terrestrial chip power.
The Supply Chain War: How Musk plans to bypass the "
Transcript
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Kind: captions Language: en So Elon Musk's companies just announced a massive new project and it's called Terraab. The plan, it's a team up between Tesla, SpaceX, and XAI to make advanced computer chips. And you guessed it, a lot of experts are already calling it a total failure before it's even started. But are they missing the point? Let's dig into one investor's take on why they might be wrong. SpaceX investor Shawn Magcguire puts it pretty simply. He just says, "People don't think it's going to work." Yeah, the arguments against it are pretty predictable. They're new to this. It's impossible. It's too hard. But he argues these critics have well a pretty basic understanding of what really matters here. So here's the split. Skeptics see a technology problem. He sees a massive supply chain problem. And you know what? This feeling of they can't do that is nothing new for these companies. Just think about it. Reusable rockets, Starlink, Vision Only FSD, they all got the same reaction at first. I mean, remember when everyone said self-driving was impossible without LAR and radar? They kind of ignored the billion realworld examples of a dual camera system that works just fine, our eyes. So, why is building ships in house such a big deal? It's not just about the chips themselves. It's really about owning your supply chain, killing bottlenecks, and enabling an absolutely insane scale of production. Because when you're making physical stuff, the supply chain is what will absolutely kill you every time. For instance, when Starling supply chain broke down, they just built their own parts in a tent. And that's the key skill skeptics are overlooking. These companies are experts at complex supply chains. Look, nobody is saying that making chips is easy. Of course, it's incredibly hard. The real question is, who is best equipped to solve the massive supply chain problem that comes with it? Which leaves us with a final thought. When has underestimating these teams ever actually been the right call?