Intel joins Musk's Terafab AI chip project to power humanoid, data center goals

Intel has announced its partnership with Elon Musk's Terafab project, collaborating with Tesla and SpaceX to develop AI chips aimed at enhancing Musk's robotics and data center initiatives.

Following the announcement, Intel's shares surged over 2%. The collaboration is expected to help Terafab achieve its ambitious goal of producing 1 terawatt per year of computing power for AI and robotics advancements.

Musk previously outlined plans for Tesla to establish a vast AI chip fabrication facility in Austin, Texas, with one plant dedicated to powering vehicles and humanoid robots, and another for AI data centers in space.

This partnership is seen as a crucial move for Intel as it seeks to regain competitiveness in the AI sector and bolster investor confidence amid ongoing restructuring efforts, which include job cuts and asset sales, following significant operating losses in its foundry business.