EVwire brief: Intel has joined Elon Musk’s Terafab project, which is aimed at achieving 1 terawatt per year of AI compute output.
Intel said its manufacturing capabilities will support the Terafab’s production target, which is designed to supply chips for Tesla’s autonomous systems and humanoid robot program, alongside compute infrastructure for AI data centers.
Intel shared a photo of its CEO, Lip-Bu Tan, with Tesla and SpaceX CEO Elon Musk:
In a post on X, the Intel CEO stated that the Terafab project reflects a shift in how semiconductor logic, memory, and packaging are produced. He also expressed excitement about the ambitious project due to Elon Musk’s track record.
“Elon has a proven track record of reimagining entire industries... 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 Terafab is Elon Musk’s most ambitious project to date. Built by SpaceX, Tesla, and xAI, it is a facility that is expected to produce 1 TW worth of chips per year. The main Terafab building is expected to be the largest in the world, spanning 100 million square feet, as per Elon Musk’s initial estimates.
The Terafab will produce two types of chips for Elon Musk’s companies. These include inference chips like AI6 and AI7 that will be used in vehicles like the Cybercab and in humanoid robots like Optimus, which is expected to be produced by the billions.
The Terafab will be supporting both Tesla and SpaceX’s long-term plans
The Terafab will also be producing the D3 chips, which will be used by SpaceX for its space-based data centers. Satellites that will be used for the orbital installation will be launched by Starship, SpaceX’s fully reusable rocket.
The announcement arrives as SpaceX, now merged with xAI, reportedly filed for a confidential IPO. Reports have suggested that SpaceX will aim to raise $75 billion during its IPO, potentially making it a $1.75 trillion company. A successful market launch later this year would provide a massive capital injection into the Terafab project, ensuring the 1-terawatt goal remains on track.
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