Samsung's manufacturing division, Samsung Foundry, secures a substantial contract valued at $16.5 billion with electric vehicle maker, Tesla, for the production of artificial intelligence chips.
Tesla and Samsung Announce Multi-Billion Dollar Deal for Next-Generation AI Chip Production
Tesla, the electric vehicle giant led by billionaire CEO Elon Musk, has signed a groundbreaking deal worth $16.5 billion with Samsung Electronics to manufacture its next-generation AI chip, the AI6. The AI6 chip, designed to power Tesla's Full Self-Driving system, Optimus humanoid robot, and AI training platform Dojo, will be produced at Samsung's dedicated semiconductor fab in Taylor, Texas.
The deal, announced in July 2025, signifies a significant shift in Tesla's AI hardware strategy. The AI6 chip represents an all-in-one architecture aimed at replacing separate chips for various applications, streamlining Tesla's AI hardware ecosystem across vehicles, robotics, and data centers.
The AI6 chip follows the AI5 chip, whose design was recently completed and is currently being produced by TSMC in Taiwan and Arizona. AI4 chips are already being manufactured by Samsung. Elon Musk hinted that Tesla may spend well beyond the initial $16.5 billion, suggesting the partnership could scale significantly.
For Samsung, this deal marks a major win. The company has struggled to attract and retain major chip clients recently. The exclusive, large-scale production commitment at its new Texas fab signifies a substantial revenue boost and a strategic foothold in the AI and automotive chip markets.
The partnership also signals Samsung’s growing role in advanced AI chip foundry services, moving beyond consumer electronics to high-performance, highly specialized chips for autonomous driving and AI CPU/GPU fusion. Tesla will reportedly help Samsung maximize manufacturing efficiency, indicating a deep technical partnership rather than a simple customer-supplier relationship.
The deal reinforces Samsung’s ambition to compete head-to-head with leading foundries like TSMC in AI chip manufacturing. However, the company has been losing ground to TSMC due to its lower yields. Samsung expects operating loss in its contract chip manufacturing business to narrow in the second half of the year.
Japan's AI company Preferred Networks is another confirmed client of Samsung's 2nm foundry process. Qualcomm is also reportedly considering a chipmaking deal with Samsung for its 2nm foundry process.
The agreement was announced by Samsung without naming the client, citing confidentiality. The deal will run through the end of 2033.
References: 1. Tesla signs $16.5 billion deal with Samsung to make next-gen AI chip 2. Tesla's AI6 chip: What it means for Tesla, Samsung, and the AI industry 3. Tesla's AI6 chip: A transformative partnership for Samsung 4. Samsung to build dedicated semiconductor fab in Texas for AI6 chip production
- Elon Musk, the CEO of Tesla, and Samsung Electronics have entered a significant partnership worth $16.5 billion in the financing sector, which involves Tesla investing in Samsung's business to produce the AI6 chip.
- The AI6 chip, a pivotal part of Tesla's Full Self-Driving system, Optimus humanoid robot, and AI training platform Dojo, will be utilized not only by Tesla but also by other companies in the technology industry, such as Japan's AI company Preferred Networks, who are confirmed clients of Samsung's advanced 2nm foundry process.
- The AI chip industry is expected to witness a significant power shift as Samsung, with its large-scale production commitment from Tesla, aims to challenge TSMC's dominance by improving its manufacturing efficiency and expanding its service offerings beyond consumer electronics, venturing into high-performance, specialized chips for autonomous driving and AI CPU/GPU fusion.
