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These giant fungus naturally generate in warped and crimson forests biomes. Huge funguses are the Nether variant of regular trees in the overworld. Their stems are a wood variant which can be used to craft their own wooden planks variant.
Giant fungi change appearence depending on the biome they are generated in. Blue giant fungi have, you guessed it, a cracked stem filled with seemingly glowing blue mecylium. The top 'leaves' are also a blue color. Blue giant fungi grow from warped fungus . Giant crimson fungi is almost the opposite; with a cracked, red stem, and red 'leaves'. These evolve from crimson fungus. Both variants can have shroomlight spawned inside them.