Tesla and Samsung Forge $16.5 Billion Deal for AI6 Chips

Tesla CEO Elon Musk has confirmed a multiyear agreement with Samsung Electronics worth $16.5 billion to produce the electric-car maker’s next-generation AI6 chips. Under the deal, Samsung’s delayed fab in Taylor, Texas, will be dedicated to manufacturing the chips, giving the foundry a much-needed anchor customer after a string of delays and heavy losses. Musk stated that the contract, which runs through 2033, underscores the strategic importance of the facility and added that Tesla will help optimize manufacturing efficiency. The order marks a shift back to Samsung after Tesla’s AI5 chips were previously assigned to Taiwan’s TSMC. Samsung already manufactures the company’s current AI4 processors. Analysts note that the agreement could revive Samsung’s fledgling logic-chip business, which significantly lags behind TSMC in market share and has been incurring sustained losses. With production expected to ramp up later this decade, the partnership strengthens technological ties between South Korea and the United States and positions the Texas fab as a central player in the rapidly growing automotive AI chip industry.