Intel officially joined Elon Musk’s Terafab project to develop advanced AI chips for Tesla, SpaceX, and xAI. The initiative plans initial manufacturing facilities in Austin, Texas to meet rising AI compute demand.
The partnership focuses on producing processors for robotics, AI data centers, and autonomous vehicles. These facilities will integrate logic, memory, and advanced packaging into a single manufacturing site.
The project targets a total computing output of one terawatt annually. This collaboration allows Musk to create a vertically integrated supply chain and reduce reliance on external manufacturers.
Intel aims to reassert its position in the high-performance AI market against rivals TSMC and Nvidia. Intel shares rose following the announcement as investors reacted to the company's expanded role in the AI sector.