The Verge Intel announced Tuesday that it will partner with Elon Musk’s Terafab venture to design and construct a massive AI chip fabrication plant in Austin, Texas. The facility will supply custom chips to Musk’s aerospace and automotive firms, SpaceX (now merged with xAI) and Tesla, supporting ambitions ranging from autonomous vehicles to space‑based data centers. Intel’s involvement eases Musk’s earlier pleas for a partner capable of delivering a trillion‑watt‑year of compute power, while the chipmaker expands its U.S. manufacturing footprint amid a broader industry race to meet soaring AI demand.
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