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Intel Joins Elon Musk’s Terafab to Build AI Chips at Massive Scale

The move signals a bid to secure future AI chip supply.

Overview

  • Intel, which announced the tie-up Tuesday, said it will support Terafab with chip design, fabrication, and advanced packaging.
  • Terafab targets 1 terawatt per year of compute for AI and robotics, a goal the companies frame as far beyond current production levels.
  • SpaceX described the plan as uniting logic, memory, and packaging under one roof to cut outside dependencies and speed development.
  • The first complex is planned for Austin, Texas, near Tesla operations, though the companies have not shared firm timelines or costs.
  • Intel shares rose after the news, and the venture positions the partners against dominant chip makers and designers such as TSMC, Samsung, and Nvidia.