Elon Musk teams up with Intel for cutting-edge chip production

Elon Musk is making a bold move with Tesla’s massive $20 billion Terafab project near Austin, Texas. The plant will produce chips for Tesla’s electric cars, SpaceX’s rockets, and xAI’s artificial intelligence systems. Musk recently announced plans to use Intel’s upcoming 14A chip technology, which is still in development and expected to launch in 2028. While Intel has struggled to attract customers for its manufacturing tech, a deal with Musk could change that. The partnership remains unclear—Musk didn’t specify whether Tesla will use Intel’s factories or just license its technology.Intel’s stock jumped 3. 3% after Musk’s announcement, climbing over 50% in recent weeks. Investors are hopeful because AI companies are buying huge amounts of processing units, and Intel still dominates the CPU market despite lagging behind in advanced AI chips. After years of manufacturing delays, Intel is desperate for big clients to keep its factories running. Earlier this year, Intel even hinted it might scrap the 14A project if no one signed up. Musk’s interest could save the program—but using Intel’s tech instead of its factories means the company still won’t get the big financial boost it needs. Musk has a history of making grand promises that take years to materialize. Still, experts believe Intel is close to securing major deals, with decisions expected by 2027. Whether this collaboration will work out remains uncertain, but for now, Intel’s stock is rising on the possibility.