Intel teams up with SpaceX, Tesla and xAI on TeraFab project

Intel Corp (NASDAQ:INTC, XETRA:INL) has announced that it is joining Elon Musk's TeraFab initiative, a project aimed at building large-scale semiconductor fabs to supply chips for AI, robotics, and space applications.

The announcement was made on Tuesday via a post on Musk's social media platform X, without accompanying press releases or filings.

Intel stated that its expertise in chip design, fabrication, and packaging could support TeraFab's goal of producing 1 terawatt per year of compute for next-generation AI and robotics systems.

"Intel is proud to join the Terafab project with SpaceX, xAI, and Tesla to help refactor silicon fab technology," the post read.

"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."

The post included a photo of Musk with Intel CEO Lip-Bu Tan, noting that Musk had visited Intel over the weekend.

TeraFab, originally introduced as a joint venture between Tesla Inc (NASDAQ:TSLA) and SpaceX, now also includes Musk's AI startup, xAI. According to Musk, the project aims to produce chips for Tesla's robotaxis and Optimus robots, as well as specialized semiconductors for SpaceX's planned network of AI-powered orbital data centers.

Shares of Intel added 4.4% at about $53 on the news, while Tesla shares were down 2.9% at $343.