Nvidia Corp. (NASDAQ: NVDA) CEO Jensen Huang expressed confidence in Tesla Inc. (NASDAQ: TSLA) and Space Exploration Technologies Corp. (NASDAQ: SPCX)’s plan to build a massive semiconductor manufacturing facility, known as Terafab.
Huang made the comments on Monday at the All-In Summit, stating that while the project may look audacious, Musk is uniquely positioned to execute it. Huang noted that he and Musk discussed the initiative during a flight together, adding that Musk’s ability to decide on a goal and execute it is a "superpower."
Huang acknowledged Nvidia’s own expertise in process technology and systems, but stopped short of confirming whether Nvidia would use Terafab for its own chip fabrication. "We know a lot about process technology because we’re pushing the limits of everything," Huang said, referring to Nvidia’s scale and systems expertise.
The Terafab project was unveiled by Elon Musk in March. According to SpaceX SEC filings, the initiative is being developed with Tesla and Intel Corp. (NASDAQ: INTC). The long-term goal is to produce one terawatt of compute hardware annually, integrating lithography-mask design, logic and memory fabrication, and advanced packaging under one program.
SpaceX’s filing states that Terafab aims to ease potential chip shortages and produce hardware optimized for Tesla vehicles and Optimus robots, as well as chips for orbital AI infrastructure. The facility is projected to span roughly 100 million square feet, about 10 times the size of Tesla’s gigafactory in Texas. The filings caution, however, that specific timelines, milestones, and capital expenditures remain undetermined, and that neither Tesla nor Intel is obligated to remain involved.
Huang’s remarks follow earlier praise for Musk’s execution. Nvidia previously noted that xAI and Nvidia built a 100,000-GPU supercomputer in Memphis in 122 days. Huang described this accomplishment as "superhuman" and Musk as "singular in his understanding of engineering." Musk has reciprocated the admiration, calling Nvidia’s market capitalization "well-deserved" and stating that Tesla and SpaceX expect to keep ordering Nvidia chips at scale.
