Samsung and Tesla join forces in a monumental $16.5 billion agreement to manufacture cutting-edge AI6 microchips within Texas' borders.
Tesla has announced a significant partnership with Samsung Electronics, worth an estimated $16.5 billion, for the production of its next-generation AI6/HW6 chip. This deal, running from July 2025 through to the end of 2033, marks a crucial step in Tesla's autonomous driving and AI-powered robotics projects, such as the Optimus humanoid.
The AI6 chip is anticipated to deliver significant performance improvements over previous hardware generations, promising substantial improvements in processing power and energy efficiency for Tesla’s AI hardware. The chip will be manufactured at Samsung's new state-of-the-art semiconductor fab in Taylor, Texas, likely using cutting-edge 2-nanometer technology.
Elon Musk, Tesla's CEO, has personally confirmed his involvement in the progress of the AI6 chip production and has emphasized the strategic value of the deal. He stated that the proximity of Samsung's new facility was a critical factor in the agreement. The deal provides Samsung's foundry business with a major anchor client, helping revive its struggling semiconductor manufacturing division and giving much-needed business to the delayed Taylor fab.
This contract marks a shift for Tesla from in-house chip development toward partnerships with leading chip manufacturers, aligning with broader industry trends of collaboration given the rising complexity and cost of AI chip R&D. Tesla will also use technologies from Nvidia and AMD, signaling a more open approach to external expertise.
The production of the AI5 chips, Tesla's current generation, begins in Taiwan and later expands to Arizona. The AI5 chip is not expected to appear in Tesla vehicles until later into 2026. Musk has confirmed that Tesla will work closely with Samsung to optimize manufacturing efficiency.
The deal was first reported by Bloomberg, and Musk himself confirmed the agreement on his social media platform, X. The strategic importance of Samsung's Texas fab producing Tesla's AI6 chip is hard to overstate, according to Musk, as it is essential for Tesla's future autonomous driving and robotics ambitions. Currently, Samsung's role in Tesla's chip production is limited to the AI4/HW4 generation.
The strategic value of Tesla's partnership with Samsung Electronics, especially in the production of the AI6 chip, is significant for Tesla's business and technology goals, as it aligns with the broader industry trend of collaboration in AI chip Research and Development. This deal in the finance sector is expected to revive Samsung's struggling semiconductor manufacturing division and strengthen its position in the technology industry.