Tesla Signs $16.5 Billion AI Chip Deal With Samsung

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Big News: Tesla & Samsung Ink $16.5B AI Chip Deal


Summary:

On July 28, 2025, Tesla CEO Elon Musk confirmed a landmark $16.5 billion, multi‑year agreement with Samsung Electronics to manufacture Tesla’s next‑generation AI6 (HW6) chips at Samsung’s new foundry in Taylor, Texas, extending through 2033.


What the deal covers:

AI6 chips, custom‑designed by Tesla, intended for:

Full Self‑Driving (FSD) systems in Tesla vehicles.

Optimus humanoid robots.

Dojo AI training and data center infrastructures.

Samsung will enable Tesla to participate in manufacturing efficiency optimization, a point Musk emphasized personally.

The $16.5 billion figure is described as a baseline, with Musk suggesting the actual output could be several times higher.


Strategic significance:

The agreement marks Samsung’s largest single‑customer foundry deal ever, shifting the company more into driver‑designed chip production.

Production is slated to begin in late 2025 or early 2026, once the Taylor facility is operational, with full ramp‑up anticipated by 2028.

The deal is a major vote of confidence in Samsung’s advanced process technology (2 nm SF2A/F) and its ability to scale high‑yield production—historically a challenge in its foundry business.

Tesla continues to diversify its chip supply chain—up to now working with Samsung on AI4 chips and with TSMC for the intermediate AI5 chips, produced in Taiwan and Arizona.


Stock market reaction:

Samsung’s shares jumped ~6–7%, reaching levels not seen since fall 2024.

Tesla stock rose ~1.5–1.9% in pre‑market and early trading on the news.

Key takeaways

  • Contract confirmed by Elon Musk on July 28, 2025

  • $16.5 billion deal spans 2025–2033 (some sources say through 2034, but most reports cite 2033)

  • Production at Samsung’s Taylor, Texas fab, using its 2 nm process

  • A milestone in Samsung’s push into foundry business and Tesla’s AI chip autonomy strategy. 

  • Let me know if you’d like a deeper breakdown—like impact on EV supply chains, technical specs of AI6 vs AI5, or how Samsung’s foundry compares to TSMC.

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