Intel to join Musk's Terafab mega AI chip project

An Intel logo appears in this illustration taken August 25, 2025. (REUTERS/Dado Ruvic/Illustration)

April 7 (Reuters) - 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)