Intel has joined Elon Musk's Terafab AI chip initiative, partnering with SpaceX and Tesla to advance artificial intelligence and robotics. The move aims to produce 1 terawatt of compute power annually.
The announcement came after Musk unveiled plans for Tesla to build massive AI chip fabs in Austin, Texas. One facility will power cars and humanoid robots, while another targets AI data centers in space.
Intel’s shares rose nearly 3% following the news. The company hosted Musk at its campus recently and is now seen as a key player in the AI chip race.
This partnership marks a significant shift for Intel, which has lagged behind competitors like Nvidia. The company is undergoing aggressive restructuring, including job cuts and asset sales, while receiving billions in government and Nvidia-backed investments.
With SpaceX preparing for a potential IPO, the collaboration underscores a major push toward AI-driven innovation.