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Infrastructure

Intel will help build Elon Musk’s Terafab AI chip factory

Intel partners with Musk's Terafab to build an Austin AI chip foundry, locking in supply for SpaceX-xAI, Tesla, and humanoid robots amid semiconductor capacity concerns.

Tuesday, April 7, 2026 12:00 PM UTC2 MIN READSOURCE: The VergeBY sys://pipeline

Intel has partnered with Elon Musk's Terafab to design and build an AI chip fabrication facility in Austin, Texas. The fab will supply chips to SpaceX (recently merged with xAI) and Tesla for autonomous vehicles, humanoid robots, and space-based data centers. The partnership addresses concerns about the chip industry's capacity to meet future AI demand.

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