Musk assembles Intel, SpaceX talent for Tesla wafer fab ambitions
Tesla CEO Elon Musk. Credit: AFP · Tesla and SpaceX are already converging around chips, talent and manufacturing under Terafab, even before any merger speculation turns into reality.
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Tesla CEO Elon Musk. Credit: AFP · Tesla and SpaceX are already converging around chips, talent and manufacturing under Terafab, even before any merger speculation turns into reality.
Musk's Terafab project, which is focused on developing specialized chips for SpaceX, xAI, and Tesla, is at the heart of this collaboration. Details of the Partnership On Tuesday, Intel announced its commitment to work with SpaceX, xAI, and Tesla to "design, fabricate, and package ultra-high-performance chips at scale."
The Terafab project — a SpaceX-led semiconductor campus approved for tax incentives by Grimes County in June 2026, with reported investment up to $119 billion and more than 1,800 jobs — is taking shape at the former Gibbons Creek Reservoir site, east of Highway 6 between Navasota and College ...
Each AI1 satellite is designed to support AI chips from a variety of manufacturers, including Nvidia or Tesla’s own 2nm Terafab chips. The computing power of one unit averages 120 kW with the possibility of a peak increase of up to 150 kW, which is comparable to modern server rack equipment.
The challenge, however, is that its profitability remains under pressure. While its core business was profitable, its AI ventures are still burning cash. For example, it is a partner with Tesla (NASDAQ:TSLA) in Terafab, a semiconductor project that will cost billions of dollars over time.
And newer fabs will likely incorporate EUV machines as standard equipment. Just last month, Elon Musk addressed ASML employees during a conversation with ASML CEO Christophe Fouquet about the proposed Terafab joint venture between Tesla (TSLA -2.47%), SpaceX, and SpaceX-owned xAI.
At the same time as Apple negotiations ... direct action—converting $9 billion of federal subsidies into a 10% equity stake in Intel, making it its largest shareholder. This move quickly produced a demonstration effect. In September last year, Nvidia announced a $5 billion investment in Intel and purchased custom data center chips. Nvidia CEO Jensen Huang called it a "historic" partnership. This April, Elon Musk’s SpaceX announced that Intel would join its "Terafab" manufactu
SpaceX and Tesla are building Terafab in Texas, which will cost over $100 billion. In the last earnings report, Tesla hinted that it will not achieve a positive free cash flow this year because of this project. SpaceX is also investing billions of dollars in its AI business, including xAI, even as Grok faces intensifying competition from leading AI models developed by OpenAI and Anthropic.
These massive solar farms often ... Terafab addresses this challenge by automating solar construction with integrated quality control, safety, compressing timelines and accelerating ......
The analyst stated that the company could also record an IEEPA (International Emergency Economic Powers Act) receivable this quarter, similar to what Ford (F) and General Motors (GM) did last quarter, which could boost gross margins and provide upside to expectations. Meanwhile, Spak is looking forward to several updates, including a long-term vision for robotaxi, Optimus, FSD (full self-driving), and TeraFab.
As two Grimes County school districts prepare to vote on Terafab tax agreements, newly obtained state records reveal what happened behind the scenes during the application process.
Nvidia announced a $5 billion investment in Intel alongside plans to purchase custom data center chips, while Elon Musk's SpaceX joined Intel's Terafab manufacturing initiative. Intel's contract manufacturing business has faced significant headwinds, reporting $10.4 billion in operating losses over the last four fiscal quarters. To regain industry trust, Tan overhauled the company's reporting structure, consolidated custom chip design efforts, and aggressively recruited execu
Terafab, backed by Tesla, SpaceX and xAI, is intended to produce specialized chips for artificial-intelligence systems, autonomous vehicles, humanoid robots and space-based data centers.
It has pulled back the curtain on its orbital ambitions a little further, launching a dedicated website for Starmind. The site fleshes out details on the AI1 satellite that will actually build the constellation with up to a million units and will be able to take AI chips from any manufacturer, be it Nvidia or Tesla's Terafab 2 nm foundry itself.
Terafab was announced by Musk back ... a massive, vertically integrated semiconductor manufacturing project that would provide all the chips the three companies needed for their AI initiatives without needing third-party companies...
A gigawatt of orbital AI needs roughly 100-130 Starship launches at ~7 MW per launch. AI satellite deployments could start as early as Q1-Q2 next year and with Tesla AI5 chips hitting volume production mid-next-year and a Terafab (100M sq ft) targeting terawatt-per-year output long-term.
Apple's preliminary deal reportedly points certain Mac and iPhone chips, with iPad Pro and entry-level MacBook Air parts expected to use Intel's 18A node. Nvidia invested $5 billion and pledged to co-develop AI infrastructure with Intel. Intel also joined a planned foundry project with SpaceX and Tesla dubbed Terafab. Take those specifics as reported, not settled: the WSJ describes preliminary agreements, and volume, timing and 18A yield are the parts that actually decide whether Intel
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SpaceX application: https://job-boards.greenhouse.io/spacex/jobs/8609445002?gh_jid=8609445002Grok 4.5 Reviews: https://x.com/elonmusk/status/2075130137817825...
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