“Intel joins Musk's Terafab AI chip project to power humanoid, data center goals”
“The goal of Terafab is to significantly increase compute output, with doses of compute production that will ultimately produce approximately one terawatt of compute capacity per calendar year.”
“Intel said it’s joining Elon Musk’s Terafab project, a long-shot chip manufacturing effort for Tesla Inc., SpaceX and xAI.”
“In short: Intel has signed on as the primary foundry partner for Elon Musk’s Terafab, a $25 billion joint venture between Tesla, SpaceX, and xAI targeting a terawatt of AI compute per year.”
“Intel will contribute its 18A process node, the company’s most advanced logic manufacturing technology, currently ramping to high-volume production.”
“Terafab that claims it will produce one terawatt of AI compute every year.”
“The credibility problem Terafab has not solved. The scepticism around Terafab is structural, not merely financial.”
“The node has been in development for several years and is only now entering volume ramp.”
“Building a 2nm-class fabrication facility capable of 100,000 wafer starts per month costs roughly $25-35 billion on its own.”
“Musk’s companies have a documented history of announcing timelines for facilities and products that subsequently stretch by years.”
“a surprising name has emerged as the semiconductor sector’s most resilient performer: Intel Corporation (NASDAQ: INTC).”
“On April 7, 2026, Intel opened at $50.78, marking a staggering 159.5% return over the trailing 52 weeks.”
Intel Corporation has officially committed to Elon Musk's Terafab initiative, investing $25 billion to help produce one terawatt of AI compute capacity annually, in collaboration with Tesla, SpaceX, and xAI. As the primary foundry partner, Intel will utilize its advanced 18A process node technology to manufacture custom chips for emerging AI and robotics applications. However, the project's ambitious goals are overshadowed by skepticism regarding its feasibility and Musk's history of delayed timelines in his ventures.
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