Tesla has entered into a $16.5 billion agreement with Samsung Electronics to source its next-generation AI6 chips, according to Tesla CEO Elon Musk.
“Samsung’s giant new Texas fab will be dedicated to making Tesla’s next-generation AI6 chip. The strategic importance of this is hard to overstate,” Musk said in a post on X on Monday. “Samsung agreed to allow Tesla to assist in maximizing manufacturing efficiency,” he added.
Samsung plans to produce the chips at its forthcoming fabrication facility in Taylor, Texas, a site that has experienced setbacks due to difficulties in keeping customers. Under the terms of the deal, Tesla will collaborate closely with Samsung to improve manufacturing efficiency, with Musk monitoring the process.
Samsung previously declared it had secured a contract to provide semiconductor manufacturing services to a major global client, though the company withheld the customer’s identity due to business confidentiality. The deal, valued at around $16.5 billion, equivalent to 7.6% of Samsung’s 2024 revenue, will span nine years, running from July 24, 2025, to December 31, 2033.
Tesla’s upcoming AI6 chip will power a range of advanced technologies, including its next-gen Full Self-Driving (FSD) systems, the Optimus humanoid robot, and AI training platforms like the Dojo supercomputer. At present, Tesla relies on AI4 chips to run its Hardware 4 (HW4) vehicles. Before the full rollout of the AI6 chip, an interim solution, the AI5 chip, manufactured by TSMC (Taiwan Semiconductor Manufacturing Company), will serve as a transitional step in Tesla’s evolving AI hardware lineup.
Musk also mentioned that TSMC, which is currently producing AI5 chips in Taiwan, will soon start manufacturing them at its facility in Arizona.
The agreement arrives at a pivotal moment for Samsung, which is under increasing pressure in the competitive AI chip market, lagging behind rivals such as TSMC and SK Hynix, an issue that has impacted both its earnings and stock performance.
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