US-based tech firm Intel is set to join Elon Musk’s Terafab project, an AI chip manufacturing complex being developed in Texas with SpaceX and Tesla.
The chip manufacturer confirmed the association via a post on X platform that included a photograph of Intel chief executive Lip-Bu Tan and Elon Musk shaking hands.
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In the post, Intel said “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.”
Reuters reported that Intel shares rose more than 2% after the announcement.
Tan later wrote on X: “Elon has a proven track record of reimagining entire industries.
“This is exactly what is needed in semiconductor manufacturing today. Terafab represents a step change in how silicon logic, memory and packaging will get built in the future. Intel is proud to be a partner and work closely with Elon on this highly strategic project.”
The development follows Musk’s earlier outline of plans for Tesla to build a large-scale AI chip fabrication plant to power autonomous vehicles. At that time, he had indicated that Tesla might collaborate with Intel on the project.
Last month, Musk launched the Terafab project, confirming that his electric-vehicle firm Tesla and his rocket company SpaceX will work together to produce chips for data centres, robots and autonomous cars.
The plan involves building two advanced chip plants at a site in Austin, Texas. One facility will concentrate on supplying chips for electric cars and humanoid robots, while the other is planned to support AI data centres located in space.
For Intel, which has been under pressure in the AI sector, the Terafab collaboration comes as it works to restore investor confidence and push ahead with a multi-year turnaround, according to Reuters.
Intel has also attracted several billion dollars in funding from Nvidia and from the US government, which has become the company’s largest shareholder.
