This will be good for Intel
For all the bluster what's happening is that Musk is fronting the money for Intel to build fabs. That solves their chicken and egg dilemma about becoming a fab - they need big customers to be a real fab but big customers won't sign up with them unless they know the capacity is there.
His terafab fantasy is still bs, and his claims about doing fabs "better" and without cleanrooms will be forgotten as quickly as the supersonic speeds through vacuum tunnels of the original hyperloop. He's just partnering with Intel in the same way that Apple partnered with TSMC by fronting the money for them to build fabs, helping supercharge their growth a decade ago.