Intel Joins Musk's Terafab AI Chip Project with SpaceX, Tesla, xAI

Intel is exploring collaboration with Musk's Terafab mega AI‑chip project -- a colossal, vertically integrated fab in Austin led by Tesla, SpaceX and xAI -- to possibly leverage Intel Foundry Services amid the $20-25B initiative.

Intel to join Musk's Terafab mega AI chip project

Intel Partners with Musk's Terafab AI Chip Complex

April 7 (Reuters) - Intel said on Tuesday it would join Elon Musk's Terafab AI chip complex project along with SpaceX, Tesla and xAI.

Overview of the Terafab Project

Last month, Musk said his rocket company SpaceX - which recently merged with his social media and artificial intelligence company xAI - and EV firm Tesla would build two advanced chip factories at a sprawling facility in Austin, Texas, one to power cars and humanoid robots and another designed for AI data centers in space.

SpaceX's Role and IPO Plans

SpaceX, which confidentially filed for a U.S. initial public offering last week, plans a market launch later this year.

Intel's Contribution and Market Impact

"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," Intel said in a post on social media platform X.

Shares of Intel were up about 2% in early trading. They have risen around 38% so far this year.

(Reporting by Deborah Sophia in Bengaluru; Editing by Pooja Desai)