Elon Musk's Terafab semiconductor project could cost $5 trillion, Bernstein claims — herculean effort would cost more than 70% of the total yearly US government budget

Elon Musk's Terafab semiconductor project, aimed at producing AI chips consuming 1 terawatt of power annually, could cost $5 trillion according to Bernstein. To achieve Musk's ambitious goals, the project would need to process millions of GPU, CPU, and HBM wafers annually through hundreds of fabs and packaging facilities. The estimated cost includes building logic and memory chips under one roof, surpassing the yearly US government budget. However, raising such a massive amount of capital and overcoming constraints in equipment availability and workforce could pose significant challenges for Musk's semiconductor venture.