Intel designs and manufactures CPUs, GPUs, and AI accelerators for data centers and client devices, and operates semiconductor foundry services through Intel Foundry. Its Xeon server CPUs have long dominated data center general-purpose compute, and the company has invested in expanding into GPU and dedicated AI accelerator products. Intel is one of the few semiconductor companies that both designs its own products and manufactures them in its own fabs.

Intel's AI product strategy addresses two markets. In data centers, the Gaudi 3 AI accelerator targets training and inference workloads as an alternative to Nvidia's GPU line. In client computing, Intel's Core Ultra processors include integrated neural processing units (NPUs) for AI PC applications, where on-device AI workloads run without cloud connectivity. The AI PC market represents a significant upgrade cycle given Intel's large share of the existing PC installed base.

Intel's most significant recent development is its role in the Terafab project. On April 7, 2026, Intel announced it has signed on as the primary foundry partner for Elon Musk's Terafab — a $25 billion semiconductor joint venture between Tesla, SpaceX, and xAI targeting 1 terawatt of AI compute per year at a facility on the Giga Texas campus in Austin. Intel also announced a separate move to repurchase Apollo Global Management's 49% stake in Fab 34 in Leixlip, Ireland for $14.2B.