Intel has introduced that it’ll assist Elon Musk design and construct his proposed Terafab in Austin, Texas, a three way partnership between Musk’s corporations like SpaceX, Tesla and xAI to fabricate the chips essential to energy numerous AI tasks. Musk introduced Terafab in March 2026 with the plan of ultimately making a terawatt of computing energy annually.
Whereas Tesla and SpaceX have expertise manufacturing within the US, chip fabrication crops like those Intel runs are costly and time-consuming to construct. Offloading the duty of really constructing the Terafab from Musk’s corporations to Intel is smart. “Our means to design, fabricate, and package deal ultra-high-performance chips at scale will assist speed up Terafab’s goal to supply 1 TW/yr of compute to energy future advances in AI and robotics,” Intel stated in its announcement.
Musk’s plan to supply chips is an element of a bigger refocusing of his numerous corporations round AI. For instance, Tesla has gone from an electrical automotive firm to a robotics firm, and SpaceX is now certainly one of a number of aerospace corporations hoping to launch AI information facilities into house. Making these intentions much more clear, SpaceX additionally acquired Musk’s AI firm xAI in February 2026 and now reportedly plans to go public.
Intel is in a barely higher place now than it was a yr in the past because of the launch of its new Intel Core Extremely Collection 3 chips and direct funding from the US authorities in August 2025, however the firm has loads of its personal points to iron out. It’s additionally nonetheless working to get two separate chip fabs in Arizona working at full capability, a mission it initially introduced in 2021.
