Lip Bu Tan Links Intel with Musk's Ambitious Terafab AI Chip Project
By Reuters | 07 Apr, 2026

Intel will join Elon Musk's Terafab AI chip complex project which also includes SpaceX, Tesla and xAI.

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

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

"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)