Tesla signs $16.5B deal with Samsung to make AI chips

Tesla has signed a $ 16.5 billion deal to get the next generation chips from Samsung.

“Samsung’s veteran will be dedicated to the new Texas Fab Tesla’s next generation AI6 chip,” Elon Musk Posted On the late Sunday evening at X. “Its strategic significance is difficult to overstate.”

Tesla’s AI6 (aka hardware 6) chip is the company’s bet on an all-in-one chip design, which can be known as Tesla’s Optimus Humanoid Robot from powering its driver aid system, which is all the way for high performance AI training in data centers.

Musk said Tesla is working with TSMC to create AI5 chips, which has just finished the design. A15, a generation that is mainly made for FSD. Initially, TSMC’s Taiwan factory and then its Arizona facility will be made. According to Musk, Samsung already forms the A14 chip.

The deal is a boost for Samsung, which struggles to remove its chip making project from the ground after failing to attract and maintain major customers. Musk said in another post that Tesla could spend more than $ 16.5 billion on Samsung chips.

“The actual production is likely to be many times more,” he said.

In a later post, Musk stated that Samsung agreed to allow Tesla to maximize manufacturing efficiency.

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“This is an important point, because I will individually walk on the line to speed up the pace of progress. And Fab is not easily located away from my house,” Musk wrote.

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