Intel is joining Terafab, an ambitious AI chip manufacturing project spearheaded by Elon Musk's Tesla and SpaceX, according to reports from Reuters, the Wall Street Journal, TechCrunch, and MarketWatch.
Under the arrangement, Intel will not merely supply capacity but will operate the new chip plant, according to Electrek's characterisation of the deal. Tesla, which had been associated with plans to build its own fabrication facility, will instead rely on Intel's established manufacturing and packaging expertise.
MarketWatch reports that Intel is bringing its design and packaging experience specifically to the Terafab project. Reuters describes the venture's goals as spanning humanoid robotics and data centre applications, two segments that require large volumes of specialised AI silicon.
Seeking Alpha has reported the deal at a value of $25 billion, though that figure has not been confirmed by the companies or corroborated across other outlets. Intel's stock rallied following the announcement, with Barron's characterising the deal as gaining steam for the chipmaker's broader turnaround effort.
The partnership represents a significant strategic development for Intel, which has been rebuilding its foundry business under its Intel Foundry Services division. Securing a high-profile manufacturing agreement with two of Musk's companies would provide both revenue visibility and reputational weight for that effort, as the foundry unit has been seeking anchor customers to justify its capital-intensive expansion plans.
Details on production timelines and chip specifications have not been disclosed in the available reports.




