Intel has joined Elon Musk’s $20 billion ‘TeraFab’ project, the chipmaker announced on the Musk-owned social media platform X.

“Our ability to design, fabricate, and package ultra-high-performance chips at scale will help accelerate Terafab’s aim to produce 1 TW/year of compute to power future advances in AI and robotics,” Intel wrote.

The post also included a photo of Intel CEO Lip-Bu Tan shaking hands with Musk in front of an Intel sign. The company said it had been “fun” hosting Musk at Intel over the weekend.

Musk officially confirmed plans to build a semiconductor plant in Austin, Texas, in March 2026, with the site set to be adjacent to Tesla’s headquarters and run as a joint venture between the automaker and SpaceX. Musk said the facility will produce chips for space data centers, advanced vehicles, and humanoid robots.

The idea was first floated by the world’s richest man at a Tesla annual shareholder meeting in November. At the time, Musk said that if Tesla was to extrapolate the best-case scenario for chip production from its suppliers, it still wouldn’t be enough, which had led him to propose the Tesla ‘TeraFab’ – “it’s like giga but way bigger.”

Musk also floated the possibility of working with Intel on the project back in November, saying during the same meeting that “maybe… [Tesla would] do something with Intel,” before adding “we haven’t signed any deal, but it’s probably worth having discussions with Intel.”

In January, Musk said that his team would be aiming for a nine-month production cycle for its semiconductors, three months less than the yearly cadence Nvidia and AMD work to when producing their AI accelerators.

Tesla has previously designed its own chip, the Dojo D1, which was built to process videos from its cars and train its autonomous fleet, and had been slated for use in the company's Optimus humanoid robot. The Dojo team was dissolved in August 2025, with Tesla instead focusing on deploying existing chips from other vendors.

However, on April 4, 2026, Anant Nivarti, who led Tesla’s Dojo team between 2017 and 2025, announced that he had rejoined Tesla as its silicon engineering lead.