Tesla has signed a $16.5 billion deal with Samsung to produce its next-generation AI6 chips. Elon Musk announced that Samsung’s new Texas facility will be dedicated to manufacturing these chips, emphasizing the strategic importance of the partnership. The AI6 chip, also known as Hardware 6, is designed to be versatile, powering everything from Tesla’s Full Self-Driving system to its Optimus robots and high-performance AI training in data centers.
Musk noted that Tesla is also collaborating with TSMC for its AI5 chips, which were recently finalized. The AI5 generation, primarily built for Full Self-Driving, will initially be produced in TSMC’s Taiwan facility before shifting to its Arizona plant. Samsung already manufactures Tesla’s A14 chips.
This deal marks a significant win for Samsung, which has faced challenges in securing major clients for its chip-making business. Musk hinted that Tesla’s spending on Samsung chips could exceed $16.5 billion, stating that actual output may be several times higher. Additionally, Samsung has agreed to let Tesla assist in optimizing manufacturing efficiency.
Tesla transitioned from Nvidia’s Drive platform to its own custom chips in 2019 with the introduction of the FSD Computer, or Hardware 3. Produced by Samsung, this chip features a redundant dual-system design for safety in automated driving. Since then, Tesla has expanded its focus on custom chips as part of its broader shift from automotive manufacturing to AI and robotics.
The new partnership underscores Tesla’s commitment to advancing its AI capabilities while strengthening Samsung’s position in the semiconductor industry. Musk also mentioned the convenience of Samsung’s Texas facility being located near his home, allowing him to personally oversee progress.