Tesla Strikes $16.5 Billion Deal with Samsung to Manufacture AI6 Chips
Tesla has finalized a long-term agreement with Samsung Electronics worth approximately $16.5 billion, under which Samsung will produce Tesla’s next-generation AI6 chips at its Taylor, Texas fabrication plant.
The contract extends through 2033 and will support Tesla’s self-driving software, humanoid robot Optimus, and Dojo AI supercomputing infrastructure. Elon Musk confirmed Tesla as the unnamed customer in a Samsung securities filing and emphasized that Tesla will help streamline production at the facility.
The facility will be dedicated solely to Tesla chip production. Musk noted his intention to personally oversee operations to enhance throughput. Samsung has historically manufactured the AI4 chip platform, while AI5 production will be handled by TSMC at its Arizona and Taiwan sites. Musk described the $16.5 billion as a starting point, suggesting the actual volume of chips produced may be several times larger.
He posted on X:
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.
 |
| Screenshot via X |
Investors responded positively: Samsung’s share price climbed nearly 7%, whereas Tesla stock gained around 1.4% to 4% following the announcement. Analysts say this partnership could validate Samsung’s foundry capacity in the U.S. after years of delays and underutilization at its Texas plant.
Why this matters?
The AI6 chip is intended to power Tesla’s next fleet of vehicles fitted with the latest Full Self-Driving systems. It will also support Optimus humanoid robots and contribute computing resources to Tesla’s Dojo supercomputer, which processes vast volumes of real-world driving video data. The AI5 chip will serve as an interim solution before AI6 rollout begins.
For Samsung, the deal offers a significant boost to its U.S. chipmaking ambitions. Its Taylor plant was built with support from the U.S. Chips and Science Act, but struggled to attract clients until this deal. As Samsung seeks to challenge TSMC for logic chip dominance, Tesla’s commitment provides valuable credibility. Samsung foundry revenue is expected to account for about 7.6% of its 2024 revenues.
The new plant had faced delays, pushing the start of operations to 2026. Analysts at SK Securities forecast initial AI6 production between 2027 and 2028. Musk has emphasized Tesla’s support for optimizing the facility’s yield and efficiency. Early production targets may not be ambitious, but the long-term forecast looks significantly larger than the initial contract amount.
With this partnership, Tesla reduces reliance on a single foundry provider, diversifying its semiconductor supply chain beyond TSMC. Samsung gains a marquee corporate client for its high-performance chip facility. As Tesla continues to pursue extensive AI-enabled products, secure and scalable chip production becomes increasingly vital.
And with anchoring a multiyear production pipeline, both companies are reinforcing their positions; Tesla advances toward scalable autonomous and robotics platforms, and Samsung strengthens its foundry competitiveness.
