Overview
- Intel, which announced the partnership Tuesday, said it will design, fabricate, and package chips for Terafab after hosting Elon Musk at its facilities over the weekend.
- Terafab targets one terawatt of yearly AI compute from two planned Austin fabs to supply Tesla vehicles, Optimus robots, and SpaceX or xAI orbital data centers.
- The partnership recasts the project from a build-it-all-in-house plan into a collaboration that leans on Intel’s foundry and advanced packaging know-how.
- Following Tuesday’s news, Intel shares rose more than 2% and Tesla slipped about 2% in regular trading.
- Key details remain unclear as analysts flag higher costs and longer timelines, with some estimating $35–45 billion and first chips no earlier than mid-2028 as investors look to Tesla’s April 22 earnings for funding guidance.