Intel Joins Musk's Terafab Project

The Terafab project, a joint venture between SpaceX, Tesla, and xAI, seeks to consolidate the entire chip-making lifecycle under one roof.

Intel CEO Pat Gelsinger praised the initiative as a necessary step to ensure the United States does not fall behind in the global AI race.

Shares of Intel jumped following the announcement, as the deal provides the chipmaker with a central role in Musk's ambitious hardware expansion.

The facility is expected to supply the specialized silicon required for both orbital data centers and humanoid robot development.