Intel Joins Tesla and SpaceX in Terafab AI Chip Project

Intel announced on April 7 that it will join Tesla and SpaceX in advancing the Terafab artificial intelligence chip project, collaborating to develop processors to support Elon Musk’s initiatives in humanoid robotics and data centers. Following the announcement, Intel’s stock rose more than 2%. The company stated on social media platform X that its technological capabilities would help the Terafab project achieve its production target of 1 terawatt (TW) of computing power per year. Months earlier, Musk had revealed Tesla’s plan to build a large-scale AI chip factory dedicated to autonomous driving compute capacity and hinted at a potential partnership with Intel. Last month, Musk further disclosed that SpaceX—now merged with xAI—and Tesla would construct two advanced chip fabrication plants within a campus in Austin, Texas: one focused on chips for autonomous vehicles and humanoid robots, and the other dedicated to AI data centers for space applications. Intel CEO Lip-Bu Tan described the Terafab project as representing a fundamental transformation in silicon logic, memory, and packaging manufacturing approaches. He emphasized that Musk’s track record of reshaping industries holds significant relevance for today’s semiconductor manufacturing landscape. Previously, Tan has implemented a restructuring plan at Intel involving workforce reductions and asset sales, securing billions of dollars in investments from both NVIDIA and the U.S. government—the latter of which has since become Intel’s largest shareholder. Additionally, SpaceX has confidentially filed for an initial public offering (IPO) in the United States, aiming to go public later this year in what could become one of the largest IPOs in history. Analysts view Intel’s collaboration with Tesla as a critical step toward regaining competitiveness in the AI sector and bolstering investor confidence.