Tesla (TSLA) has cemented a substantial deal with South Korean tech giant Samsung Electronics (005930.KS) for the supply of its next-generation artificial intelligence (AI) chips, a contract valued at a minimum of $16.5 billion. This significant agreement, running through the end of 2033, underscores Tesla’s commitment to advancing its AI capabilities across its diverse product ecosystem.
The deal, initially hinted at by Samsung in a regulatory filing without identifying the client, was later confirmed by Bloomberg and subsequently by Tesla CEO Elon Musk on social media. Under the terms of the agreement, Samsung will be responsible for manufacturing Tesla’s highly anticipated AI6 chip. These advanced chips are critical components for Tesla’s ambitious technological roadmap, powering its cutting-edge self-driving software in vehicles, the Optimus humanoid robots, and the expansive data centers that support these sophisticated technologies.
Musk further elaborated on Tesla’s chip strategy, confirming that Samsung is already the current producer of Tesla’s AI4 chip. In parallel, Taiwan Semiconductor Manufacturing Co. (TSMC) is slated to produce the upcoming AI5 chip. This multi-pronged approach to chip manufacturing highlights Tesla’s efforts to diversify its supply chain and leverage the strengths of leading semiconductor foundries.
A key aspect of the new partnership with Samsung involves the utilization of Samsung’s new fabrication plant in Texas, which will be specifically dedicated to the production of the AI6 chip. Musk also emphasized a deeper collaboration, stating that Samsung has agreed to allow Tesla to actively assist in maximizing manufacturing efficiency at the facility. This level of involvement suggests a close partnership aimed at optimizing production output and quality.
While the initially reported figure stands at $16.5 billion, Musk hinted that this valuation represents a “bare minimum,” suggesting that the actual output and value of the deal are likely to be considerably higher. Following the public announcement, Tesla’s shares experienced a modest uptick, while Samsung’s shares saw a notable surge on the Korean Stock Exchange, reflecting investor optimism about the strategic alliance.
This massive AI chip deal solidifies the critical role of advanced semiconductor technology in driving Tesla’s future innovations in autonomous vehicles, robotics, and broader AI applications, positioning both companies at the forefront of the technological frontier.
