Intel confirmed it has signed on to Musk’s Terafab initiative, a Tesla/SpaceX/xAI effort to build vertically integrated chip factories, and said it will help refactor silicon fab technology. As reported by Bloomberg, CEO Lip-Bu Tan described the collaboration as a step change in how advanced chips and packaging are produced.

AI is reshaping how infrastructure is built and scaled,” Intel CEO Lip-Bu Tan said in a statement. “Scaling AI requires more than accelerators. It requires balanced systems.”

Google Cloud already uses Xeon 6, Intel’s newest series of central processing units, to run some of its general-purpose C4 instances. The virtual machines can achieve a maximum clock speed of 3.9 gigahertz when all the cores of the underlying CPU are active. That frequency can rise to 4.2 gigahertz when only the fastest cores are online.

Intel has announced a multiyear collaboration with Google that will see the hyperscaler commit to using multiple generations of Intel CPUs in its data centers. The partners will all co-develop custom ASIC (application-specific integrated circuit)-based IPUs (infrastructure processing units) for “scaling… heterogeneous AI systems.”

The new chip sits above the Core Ultra X7 368H and below the Ultra X9 388H; surprisingly, it has the same specs as the Ultra X7 368H.

Intel Corp., trying to promote the use of its technology in data centers, said Alphabet Inc.’s Google has committed to using future generations of its Xeon processors and other chips.

Maybe AI isn't so useless after all.

Intel is preparing its third hike in CPU prices in 2026 due to immense AI demand. Expect PC components to cost 30% more compared to last year.