Elon Musk's ambitious Terafab project has landed a major new ally: Intel. The American tech giant will help design and build a sprawling semiconductor factory in Austin, Texas.

This factory is intended to supply AI chips for Musk’s SpaceX (now xAI) and Tesla ventures. Musk envisions using these chips not only for self-driving cars and humanoid robots but also for his innovative data centers planned for space.

The inclusion of Intel relieves some pressure from the billionaire, who has repeatedly expressed concerns about whether the chip-making industry can meet future demand. “Can someone else build these things?” he questioned during an earnings call earlier this year.

Building a chip fabrication plant is complex and costly. Musk’s experience lies in factories for cars and rockets, not silicon chips. Intel's involvement means that the construction will likely fall on their expertise, with the company estimating it can design, fabricate, and package ultra-high-performance chips at scale to support Terafab's goals.

The broader context includes Intel’s ongoing investments in Arizona and Taiwan's plans for a massive semiconductor plant. Together, these efforts aim to close the gap between current chip production capabilities and future demands, both on Earth and beyond.