Tesla Secures a $16.5 Billion Agreement with Samsung for Manufacturing AI6 Chips
In a significant move towards vertical integration in AI and chip design, Tesla has signed a $16.5 billion multiyear agreement with Samsung Electronics. This deal, spanning through 2033, centres on Samsung manufacturing Tesla’s advanced AI6 chips using its cutting-edge 2nm process technology [1][2][3][4].
The AI6 chip, also known as Hardware 6, is Tesla’s ambition to create a highly scalable, all-in-one AI chip. This chip is designed to power Full Self-Driving (FSD), Tesla’s autonomous driving suite, and broader AI tasks in robotics and data centers. Tesla retains full chip design control and collaborates closely with Samsung to optimise manufacturing efficiency [1][2][3].
Elon Musk, CEO of Tesla, confirmed the news on Sunday. He stated that the production of the AI6 chip at Samsung’s new Texas fab is significant. The $16.5 billion figure represents only a baseline investment for the deal, according to Musk. He also mentioned that he will personally visit the Samsung fab to help "accelerate the pace of progress" [1][2].
Strategically, this partnership is pivotal for Tesla’s autonomy and robotics vision. It secures a reliable and advanced chip supply tailored specifically for Tesla’s evolving AI hardware needs. It supports Tesla's goal to scale FSD capabilities and to power its robotics efforts more efficiently with a unified chip architecture [1].
For Samsung, the deal is a critical win amid challenges in its foundry business. Samsung’s new Texas fabrication facility struggled to attract high-profile clients until this landmark Tesla contract, which is expected to revive its foundry operations and strengthen its position against competitors like TSMC [2][3][4].
The AI6 chip will be produced at Samsung’s new semiconductor fab in Taylor, Texas. Samsung has agreed to let Tesla collaborate closely on manufacturing efficiency as part of the new deal. The production of Tesla's AI6 chip at Samsung's new Texas fab is significant, as it marks a consolidation of Tesla’s computing roadmap [1][2][3].
The AI6 chip represents a consolidation of Tesla’s computing roadmap, taking the best of Dojo and earlier chips to enable next-gen AI capabilities. The new Tesla AI6 chip will unify compute platforms across Tesla’s vehicles, Optimus humanoid robots, and data centers [1].
It's worth noting that the upcoming AI5 chip will be produced by TSMC, initially in Taiwan and later at the company’s Arizona fab. Current Tesla EVs are equipped with the AI4 chip, manufactured by Samsung, which powers the company’s FSD (Supervised) software and other autonomous driving functions [1].
AI6 is expected to power Full Self-Driving (FSD), robotics, and AI training workloads at unprecedented scale. This deal strengthens Tesla’s position in the autonomous driving market and paves the way for future advancements in AI and robotics [1][2][3][4].
References:
[1] Tesla - https://www.tesla.com/ [2] Samsung Electronics - https://www.samsung.com/global/business/semiconductor/ [3] Bloomberg - https://www.bloomberg.com/ [4] Reuters - https://www.reuters.com/
The strategic partnership between Tesla and Samsung Electronics, worth $16.5 billion, signifies a significant consolidation of Tesla's computing roadmap, as the AI6 chip, designed for powering Full Self-Driving and broader AI tasks, will be manufactured using Samsung's advanced technology. This collaboration is crucial for Samsung to revive its foundry operations and strengthen its position in the semiconductor industry.
