Intel gets on board with Musk's Terafab project - Engadget

Musk announced the project in March with the goal of producing chips for Tesla, SpaceX and xAI. Intel has announced that it will help Elon Musk design and build his proposed Terafab in Austin, Texas, a joint venture between Musk's companies like SpaceX, Tesla and xAI to manufacture the chips necessary to power various AI projects. Musk announced Terafab in March 2026 with the plan of eventually creating a terawatt of computing power each year. While Tesla and SpaceX have experience manufacturing in the US, chip fabrication plants like the ones Intel runs are expensive and time-consuming to build. Offloading the task of actually building the Terafab from Musk's companies to Intel makes sense. "Our ability to design, fabricate, and package ultra-high-performance chips at scale will help accelerate Terafab's aim to produce 1 TW/year of compute to power future advances in AI and robotics," Intel said in its announcement. Intel is proud to join the Terafab project with @SpaceX, @xAI, and @Tesla to help refactor silicon fab technology. Our ability to design, fabricate, and package ultra-high-performance chips at scale will help accelerate Terafab's aim to produce 1 TW/year of compute to