We have demonstrated the generation of 5 fs, 0.5 TW pulses at 1 kHz repetition rate using a pulse compression technique in a hollow fiber with a pressure gradient. Owing to the excellent beam quality by passing through the hollow fiber, the beam after pulse compression could be focused to a nearly diffraction-limited spot size. We obtained for the first time a peak intensity as high as 5x10(18) W/cm(2) in the 2-cycle regime.