Elon Musk’s Terafab chip factory in Grimes County, Texas could cost as much as 119 billion dollars once fully built out, according to regulatory filings tied to the project. Tesla and SpaceX have already committed an initial 16.8 billion dollars to break ground on the plant outside Houston.

Musk first unveiled the Terafab concept in March, describing it as a shared chip making effort for Tesla, SpaceX and xAI. The three companies plan to use the facility to produce logic, memory and advanced packaging under a single roof, a combination rarely attempted at this scale by any single manufacturer.

The site itself is enormous. Renderings released this month show a complex spanning more than 100 million square feet, which would make it larger by floor area than the AvtoVAZ assembly plant in Russia, currently recognized as the world’s biggest building. SpaceX is seeking a property tax abatement from Grimes County to help offset construction costs.

Intel joined the project in April as a manufacturing partner, agreeing to help design, fabricate and package what Musk has called some of the most demanding chips ever attempted commercially. The partnership gives Musk’s companies access to Intel’s fabrication expertise without building that capability entirely from scratch.

Terafab’s output is meant to feed products across Musk’s businesses rather than serve outside customers, at least initially. Tesla needs chips for its Optimus humanoid robots and self driving Cybercabs. SpaceX wants high power processors for space based data centers it plans to launch as part of a broader push into orbital computing.

Musk has also folded xAI into the project in a broader sense, saying on social media that the AI company will operate under a renamed structure, SpaceXAI, tying its chip supply directly to the Texas plant. That move consolidates Musk’s AI, rocket and car businesses around a single manufacturing backbone for the first time.

Construction financing for the first phase, estimated at 55 billion dollars, is already underway. The larger 119 billion dollar figure covers a full build out that would take years to complete and depends on continued demand for the specialized chips Musk says his companies cannot buy fast enough from existing suppliers like Nvidia and TSMC.