Elon Musk is accelerating the Terafab project, a vertically integrated AI chip factory. The facility will supply hardware to Tesla, SpaceX, and xAI. An internal memo confirms Intel as a key partner to refactor silicon fabrication for AI and robotics.
The project aims to produce chips with an annual computing capacity of 1 terawatt. This target is approximately double the current manufacturing capacity of the United States. Tesla has begun recruiting advanced semiconductor engineers in Taiwan to support the initiative.
This move toward vertical integration challenges the foundry-dependent model currently dominating the industry. Intel stock rose more than 50% over the preceding eight sessions following reports of the partnership. The venture could fundamentally reshape the competitive landscape for AI chips.