Samsung Secures $16.5 Billion AI Chip Supply Deal with Tesla for Next-Gen Autonomous Driving and AI Platforms

Samsung Electronics has secured a landmark $16.5 billion contract to supply Tesla with next-generation AI chips, a deal spanning from 2025 through the end of 2033. The chips, internally branded as "AI6," are custom-designed by Tesla engineers to power future autonomous driving systems, robotics platforms, and Tesla’s AI training clusters. Manufacturing will take place at Samsung’s advanced semiconductor fabrication plant in Taylor, Texas, which is backed by U.S. government incentives aimed at boosting domestic chip production.

Tesla CEO Elon Musk confirmed the deal, emphasizing its strategic importance and stating that Tesla will actively collaborate with Samsung to optimize manufacturing efficiency. Musk plans to personally oversee production progress at the Texas fab, underscoring Tesla's commitment to co-designing the chip architecture and layout with Samsung. The chips are expected to be highly advanced, possibly leveraging Samsung's cutting-edge 2nm fabrication process, which is competitive with industry leader TSMC's technology.

This contract is Samsung's largest foundry deal to date and marks a critical step in revitalizing its semiconductor manufacturing division, which has faced stiff competition from Taiwan Semiconductor Manufacturing Company (TSMC). The deal not only establishes Samsung as a key supplier for Tesla’s AI hardware stack but also signifies Tesla's intent to deepen vertical integration by reducing reliance on third-party GPU suppliers.

The Texas facility is designed for state-of-the-art production with output ramping from 2026, and the AI6 chips will likely feature in Tesla's upcoming Hardware 5 platform for vehicles expected in late 2026. The collaboration is poised to bolster Samsung’s global foundry credibility and is seen as a strategic revival for the South Korean tech giant's AI chip manufacturing capabilities1234567.