Intel Gets On Board With Musk's Terafab Project

Intel has announced that it will thief Elon Musk creation and build his projected Terafab successful Austin, Texas, a associated task betwixt Musk's companies for illustration SpaceX, Tesla and xAI to manufacture nan chips basal to powerfulness various AI projects. Musk announced Terafab successful March 2026 pinch nan scheme of yet creating a terawatt of computing powerfulness each year.

While Tesla and SpaceX person acquisition manufacturing successful nan US, spot fabrication plants for illustration nan ones Intel runs are costly and time-consuming to build. Offloading nan task of really building nan Terafab from Musk's companies to Intel makes sense. "Our expertise to design, fabricate, and package ultra-high-performance chips astatine standard will thief accelerate Terafab’s purpose to nutrient 1 TW/year of compute to powerfulness early advances successful AI and robotics," Intel said successful its announcement.

Musk's scheme to nutrient chips is portion of a larger refocusing of his various companies astir AI. For example, Tesla has gone from an electrical car institution to a robotics company, and SpaceX is now one of respective aerospace companies hoping to launch AI information centers into space. Making those intentions moreover much clear, SpaceX besides acquired Musk's AI institution xAI successful February 2026 and now reportedly plans to spell public.

Intel is successful a somewhat amended position now than it was a twelvemonth agone acknowledgment to nan motorboat of its caller Intel Core Ultra Series 3 chips and direct finance from nan US government successful August 2025, but nan institution has plenty of its ain issues to robust out. It’s besides still moving to get 2 abstracted spot fabs successful Arizona operating astatine afloat capacity, a task it originally announced successful 2021.