Intel CEO Lip-Bu Tan said Tuesday that the chipmaker will “work closely” with Elon Musk to support the billionaire entrepreneur's Terafab project, a potentially massive chip development and fabrication operation that will be jointly developed by SpaceX and Tesla. A photo posted by Intel’s official X account shows the two executives shaking hands last weekend in front of a large Intel sign. Musk’s 1-terawatt, ultra-high performance chip fabrication facility, which may span multiple locations, could cost billions of dollars.

“Terafab represents a step change in how silicon logic, memory and packaging will get built in the future,” Tan said in a social media post. “Intel is proud to be a partner and work closely with Elon on this highly strategic project.”

Exactly how Tan and Musk plan to execute such an ambitious venture remains unclear. Musk has been talking about the need to develop a so-called Terafab for months, viewing the endeavor as a way to produce the vast number of chips his companies will need for cars, robots, and data centers. Some chip industry analysts are