Intel Just Signed On to Elon Musk’s Massive AI Chip Project — Here’s What They’ll Be Building
The partnership aims to produce 1 terawatt per year of compute power across two massive chip factories in Texas.
Elon Musk hosted Intel executives over the weekend, and on Tuesday the chipmaker announced it’s joining Terafab — a massive AI chip project with factories designed for space. Intel announced on X that it will partner with SpaceX, Tesla and xAI to build two advanced chip factories in Austin, Texas.
One factory will produce chips to power Tesla’s cars and humanoid robots. The other is designed specifically for AI data centers in orbit. Intel’s stock jumped 2% on the news and is up 38% so far this year.
SpaceX, which recently merged with xAI, confidentially filed for an IPO last week and plans a market launch later this year. The partnership shows Musk wants to build his own chip manufacturing capacity rather than relying solely on external suppliers. It’s all part of a broader push for control over critical AI infrastructure.
Elon Musk hosted Intel executives over the weekend, and on Tuesday the chipmaker announced it’s joining Terafab — a massive AI chip project with factories designed for space. Intel announced on X that it will partner with SpaceX, Tesla and xAI to build two advanced chip factories in Austin, Texas.
One factory will produce chips to power Tesla’s cars and humanoid robots. The other is designed specifically for AI data centers in orbit. Intel’s stock jumped 2% on the news and is up 38% so far this year.
SpaceX, which recently merged with xAI, confidentially filed for an IPO last week and plans a market launch later this year. The partnership shows Musk wants to build his own chip manufacturing capacity rather than relying solely on external suppliers. It’s all part of a broader push for control over critical AI infrastructure.
