Intel Stock Rises on Potential Tesla AI Chip Partnership
Intel shares climbed nearly 1.5% Friday afternoon as reports surfaced of potential collaboration with Tesla on AI chips. The semiconductor giant could provide Tesla with its AI5 processors, though neither company confirmed negotiations. Tesla has existing agreements with TSMC and Samsung but may require Intel's fabrication capacity to scale its AI ambitions.
Market observers note Intel's desperate need for a strategic win in the competitive chip sector. While Microsoft's surplus chip inventory made it a plausible alternative, Tesla appears to be evaluating Intel's existing fab infrastructure. The unconfirmed deal highlights the intensifying race for AI hardware supremacy among tech giants.