On Tuesday, the American chipmaker introduced it was signing on to assist design and construct the sprawling facility, which might provide AI chips to Musk’s two firms, SpaceX (newly merged with xAI) and Tesla. Musk wants AI chips to energy his plans to construct a “robotic military” that features self-driving vehicles and humanoid robots, in addition to for the information facilities he plans on launching into area. SpaceX plans on making its preliminary public providing later this 12 months.
“Terafab will shut the hole between immediately’s chip manufacturing and the long run’s demand – a future among the many stars,” the Terafab web site reads.
The inclusion of Intel relieves a few of the strain on Musk to construct the manufacturing unit himself. In latest months, the billionaire has sounded more and more determined about his need for somebody to construct a chip manufacturing unit, or fab, to assist gasoline his AI ambitions. And he has questioned whether or not the chip-making business can sustain with the demand. “Can another person construct this stuff?” Musk mentioned throughout an earnings name earlier this 12 months. “I imply, it’s very exhausting to construct this stuff.”
Constructing a chip fabrication plant is complicated, requires billions of {dollars}, a few years, and a ton of specialised tools. Musk has expertise constructing factories for vehicles and rockets, however not silicon.
Now, it looks like the manufacturing unit’s development will fall on Intel, which is coping with its personal struggles. “Our means to design, fabricate, and package deal ultra-high-performance chips at scale will assist speed up Terafab’s intention to supply 1 TW/12 months of compute to energy future advances in AI and robotics,” the corporate mentioned in a submit on X immediately.
Intel is at present constructing two fabs in Arizona, as a part of a $20 billion funding to develop its US footprint. Taiwan’s TSMC can also be planning an infinite “Gigafab” north of Phoenix, with plans to function as many as 12 superior semiconductor vegetation.

