Intel to Design, Build Chips for Tesla, SpaceX Terafab Project

Intel will help design and manufacture chips for Elon Musk's Terafab project, joining an ambitious push by Tesla and SpaceX to build a new chip factory in Texas supporting one terawatt of computing power per year.

"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 posted on X, Musk's social media platform which is now a part of SpaceX.

The post included a picture of Intel Chief Executive Lip-Bu Tan shaking hands with Musk, whom Intel said visited the company's campus over the weekend.

Intel shares rose 2.2% to $51.94 in Tuesday morning trading.

The Terafab facility, announced last month, is intended to produce chips for Tesla's vehicles and the humanoid robots it's developing, as well as for SpaceX's plans to build artificial-intelligence data centers in space.

The supply of certain types of chips has become a key bottleneck for technology companies looking to rapidly scale their AI infrastructure. Musk has described the Terafab project as a response to the supply constraints of established chip manufacturers.

Write to Elias Schisgall at [email protected]