Elon Musk stated that Terafab is a "necessary" initiative to scale Optimus production, as without it the company would be constrained by a lack of AI chips. He noted that solving memory, logic, and packaging is crucial for scaling Optimus. Equipment orders have been placed for a development fab in Austin, which is intended to include lithography mask production, logic memory, packaging, and chip testing all under one roof, enabling a fast iterative cycle to try out new chip designs. Musk remarked that such a building does not exist anywhere on Earth and will be "super helpful" for high-risk, high-payoff bets on AI chips, with a primary focus on making Optimus as useful as possible.