HomeTesla partners with Samsung to manufacture its AI chips in new $16.5B deal
Tesla has inked a $16.5 billion agreement to source its next-generation chips from Samsung.
"Samsung's massive new fabrication plant in Texas will be solely dedicated to producing Tesla's next-generation AI6 chip," Elon Musk stated in a Sunday night post on X. "The strategic significance of this move cannot be overstated."
Tesla's AI6, also referred to as Hardware 6, represents the company's vision for a versatile, scalable chip architecture. This single design aims to power everything from its Full Self-Driving (Supervised) driver-assistance system and Optimus humanoid robots to high-performance AI training within its data centers.
Musk clarified that Tesla is collaborating with TSMC on the AI5 chip, which has recently completed its design phase. The AI5 generation is primarily engineered for FSD and will initially be manufactured at TSMC's facility in Taiwan before transitioning to its Arizona plant. Musk also confirmed that Samsung is already producing the previous-generation AI4 chip.
This deal provides a significant boost for Samsung, whose chip manufacturing ambitions faced challenges in securing and retaining major clients. Musk indicated in a follow-up post that Tesla's eventual expenditure on Samsung chips could exceed the initial $16.5 billion figure.
"The actual output volume is likely to be several times greater," he added.
In a subsequent post, Musk mentioned that Samsung has agreed to let Tesla contribute to optimizing manufacturing efficiency at the facility.
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Tech and VC Luminaries Join the Disrupt 2025 Agenda
Netflix, ElevenLabs, Wayve, and Sequoia Capital are among the industry leaders joining the Disrupt 2025 lineup. They will provide the crucial insights that drive startup growth and competitive advantage. Don't miss TechCrunch Disrupt's 20th anniversary—an opportunity to learn from top tech innovators. Secure your ticket now and save up to $675 before prices increase.
San Francisco | October 27-29, 2025 REGISTER NOW"This is a critical juncture, and I will be personally involved to accelerate progress. The fab's convenient location near my home facilitates this hands-on approach," Musk wrote.
Tesla transitioned from Nvidia's Drive platform to its own custom chip, the FSD Computer (Hardware 3), in 2019. This Samsung-manufactured chip, which debuted in all Tesla EVs that year, features a unique dual-system design on a single board to provide the necessary redundancy for automated driving.
Since that pivotal shift, Tesla's focus on custom silicon has grown in tandem with its broader ambitions. These AI chips are central to Tesla's strategic evolution from an automaker into a leader in artificial intelligence and robotics.
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Interesting move! I wonder if this partnership will help Tesla finally catch up on its AI chip roadmap, or if it's just another ambitious promise. The Texas plant angle is smart for supply chain resilience, but $16.5B is a huge bet. Hope it pays off for both sides.
Tesla has inked a $16.5 billion agreement to source its next-generation chips from Samsung.
"Samsung's massive new fabrication plant in Texas will be solely dedicated to producing Tesla's next-generation AI6 chip," Elon Musk stated in a Sunday night post on X. "The strategic significance of this move cannot be overstated."
Tesla's AI6, also referred to as Hardware 6, represents the company's vision for a versatile, scalable chip architecture. This single design aims to power everything from its Full Self-Driving (Supervised) driver-assistance system and Optimus humanoid robots to high-performance AI training within its data centers.
Musk clarified that Tesla is collaborating with TSMC on the AI5 chip, which has recently completed its design phase. The AI5 generation is primarily engineered for FSD and will initially be manufactured at TSMC's facility in Taiwan before transitioning to its Arizona plant. Musk also confirmed that Samsung is already producing the previous-generation AI4 chip.
This deal provides a significant boost for Samsung, whose chip manufacturing ambitions faced challenges in securing and retaining major clients. Musk indicated in a follow-up post that Tesla's eventual expenditure on Samsung chips could exceed the initial $16.5 billion figure.
"The actual output volume is likely to be several times greater," he added.
In a subsequent post, Musk mentioned that Samsung has agreed to let Tesla contribute to optimizing manufacturing efficiency at the facility.
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Tesla transitioned from Nvidia's Drive platform to its own custom chip, the FSD Computer (Hardware 3), in 2019. This Samsung-manufactured chip, which debuted in all Tesla EVs that year, features a unique dual-system design on a single board to provide the necessary redundancy for automated driving.
Since that pivotal shift, Tesla's focus on custom silicon has grown in tandem with its broader ambitions. These AI chips are central to Tesla's strategic evolution from an automaker into a leader in artificial intelligence and robotics.
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Interesting move! I wonder if this partnership will help Tesla finally catch up on its AI chip roadmap, or if it's just another ambitious promise. The Texas plant angle is smart for supply chain resilience, but $16.5B is a huge bet. Hope it pays off for both sides.
