Intel joined Elon Musk’s Terafab AI chip project alongside SpaceX, Tesla, and xAI. The company will provide chip design, manufacturing, and advanced packaging for the Texas-based initiative. The project targets an annual production goal of 1 terawatt of compute capacity.
Intel shares rose nearly 3% on April 7, 2026, following the announcement. Investors view the partnership as a significant boost to Intel’s turnaround strategy and AI market positioning.
The news follows Intel’s recent discussions with Google and Amazon regarding advanced chip packaging services.