technology

Intel joins Musk's Terafab AI chip project

Intel said it will join SpaceX, Tesla and xAI to build two advanced chip fabs in Austin to supply high-performance chips for cars, robots and space-based AI data centers.

Apr 7th 2026 · United States

Insights

  • Intel will partner with SpaceX, Tesla and xAI on the Terafab AI chip complex.
  • The project will build two factories in Austin, Texas, for chips serving vehicles and humanoid robots and for AI data centers in space.
  • Terafab aims to produce 1 terawatt per year of compute to power future AI and robotics advances.
  • SpaceX filed confidentially for a US IPO and plans a market debut later this year, and Intel shares rose about 2% on the announcement.