Bernstein: Musk's TeraFab project far exceeds current industry capacity, with an estimated cost of $5 trillion

MarsBitNews · 2026-03-27T10:03:25+00:00

Bernstein analysis indicates that TeraFab plans to produce 1 terawatt of computing power annually, requiring $5 trillion, which far exceeds industry capacity and the U.S. government budget, making it difficult to realize. The scale of this plan is similar to Altman's chip factory proposal but has not been implemented.

MarsBitNews

2026-03-27 10:03:25

Abstract generation in progress

Mars Finance reported on March 27 that Bernstein pointed out that TeraFab aims to produce 1 terawatt of computing power annually, which far exceeds the current industry capacity and is expected to cost $5 trillion. This level of capital expenditure is nearly in line with the chip foundry plan proposed by OpenAI CEO Altman for 2024, but that plan ultimately fell through. A scale of $5 trillion is equivalent to Musk rebuilding a chip company larger than Nvidia, which currently has a market value of only $4.2 trillion. Analysts also noted that even with assistance from the U.S. government, the scale of funding required by TeraFab would make it difficult for the project to proceed easily; the total budget of the U.S. government for the fiscal year 2025 is only $7 trillion. (Wide-Angle Observation)

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