Tesla just signed a deal that could reshape its technological edge for the rest of the decade—and beyond.
Elon Musk has confirmed that Tesla inked a $16.5 billion semiconductor contract with Samsung Electronics. While Samsung’s official filing kept the counterparty confidential, Musk took to X (formerly Twitter) to name Tesla and share major details about the collaboration.
At the heart of the deal: Samsung will manufacture Tesla’s next-generation AI6 chip at a new state-of-the-art facility in Texas. Musk described the chip as strategically vital and even hinted that the agreement could exceed its initial valuation. “The strategic importance of this is hard to overstate,” he wrote. “Samsung agreed to allow Tesla to assist in maximizing manufacturing efficiency. This is a critical point, as I will walk the line personally to accelerate the pace of progress.”
The contract is effective from July 26, 2025, through the end of 2033, and positions Samsung as a key production partner for Tesla’s custom-designed AI hardware. These chips are central to Tesla’s autonomous driving software, neural network training, and next-gen robotics—including the Optimus humanoid project.
For context, Samsung currently makes Tesla’s AI4 chips. Taiwan Semiconductor Manufacturing Company (TSMC) has just completed the design of the AI5, with production beginning in Taiwan before shifting to Arizona. But AI6 marks a leap forward, with Samsung taking the lead—likely leveraging its upcoming 2-nanometer chip technology, which promises dramatic gains in processing power and energy efficiency.
Samsung has fallen behind in some AI-related chip sectors, especially in high-bandwidth memory (HBM), where competitors like SK Hynix have secured pole positions with Nvidia. But this Tesla deal could shift the narrative, giving Samsung a strong foothold in the red-hot AI chip race.
From a broader industry perspective, this deal also highlights how EV companies like Tesla are not just consumers of chips—they are now actively involved in shaping semiconductor production itself. It’s another sign that Tesla isn’t simply a car company, but a vertically integrated tech innovator steering the future of mobility.
And if you’re wondering what this means for Tesla drivers or investors? Expect faster, smarter, and more capable vehicles in the near future—and a lot more headlines like this as the EV and AI industries converge.