Intel Signs On to Musk's $25B Terafab AI Chip Megafactory in Austin

TechCrunch·high signal

Intel announced it will partner with Tesla, SpaceX, and xAI on Elon Musk's Terafab project — a $25B semiconductor fab in Austin, Texas, designed to produce over one terawatt of AI compute capacity per year. Intel brings end-to-end chip manufacturing expertise; the first product, Tesla's AI5 chip for vehicles and Optimus robots, targets small-batch production in 2026 with volume in 2027. Intel shares rose on the news.