Tesla and Samsung Secure a Monumental $16.5B AI Chip Deal for Texas Facility

Tesla CEO Elon Musk has confirmed that the electric vehicle behemoth has inked a colossal $16.5 billion deal with Samsung Electronics. This deal is for the production of next-generation AI6 chips at Samsung’s forthcoming Texas facility. The agreement, set to run through 2033, signifies a substantial victory for Samsung’s beleaguered foundry business.

In an announcement, Musk revealed that Samsung’s enormous new Texas fab would be solely dedicated to manufacturing Tesla’s cutting-edge AI6 chip. He emphasized the strategic importance of this move, describing it as “hard to overstate“. These AI6 chips are set to power Tesla’s Full Self-Driving technology and future robotics ventures, marking the company’s shift from being just an automaker to a pioneering AI and robotics company.

Following this announcement, Samsung’s shares saw a significant jump of as much as 6.8%, while Tesla shares experienced a 1.9% rise in premarket trading. This deal provides Samsung with a crucial anchor client for its Taylor, Texas facility, which had previously faced delays due to the absence of major customers.

Source: CNBC