Historic $16.5B AI Chip Deal Signed Between Tesla and Samsung
Tesla CEO Elon Musk has confirmed a groundbreaking $16.5 billion chip manufacturing deal with Samsung Electronics, set to run until December 2033. This contract will dedicate Samsung’s upcoming Texas fabrication plant to the production of Tesla’s next-generation AI6 chips, designed for autonomous vehicles and robotics applications.
“Samsung’s giant new Texas fab will be dedicated to making Tesla’s next-generation AI6 chip,” Musk posted on X. “The strategic importance of this is hard to overstate.“
The deal, representing 7.6% of Samsung’s 2024 annual revenue, stands as one of the largest foundry orders ever secured by the South Korean tech giant.
In response to the announcement, Samsung’s shares surged by 6.8%, providing a much-needed boost to its struggling foundry division. This division has faced losses exceeding $3.6 billion in the first half of 2025. The Taylor, Texas plant is scheduled to commence operations in 2026.
Source: CNBC