Intel will participate in Musk’s massive AI chip project, Terafab

Together with SpaceX, Tesla, and xAI, Intel said on Tuesday that it would join Elon Musk’s Terafab AI chip complex project.

Last month, Musk announced that his EV company Tesla and his rocket company SpaceX, which recently merged with his social media and artificial intelligence company xAI, would construct two cutting-edge chip factories at a sprawling facility in Austin, Texas. One of the factories would power cars and humanoid robots, while the other would be used for AI data centers in space.

SpaceX intends to appear on the market later this year, having discreetly filed for a US IPO last week.

In a post on social media site X, Intel stated, “Our ability to design, fabricate, and package ultra-high-performance chips at scale will help accelerate Terafab’s aim to produce ~1 terawatt per year of compute to power future advances in AI and robotics.”

In early trade, Intel’s shares were up roughly 2%. So far this year, they have increased by almost 38%.