Tesla and Samsung Team Up to Make AI Innovation

Tesla, the U.S. electric vehicle giant, has signed a landmark $16.5 billion deal with Samsung Electronics to produce next-generation AI6 chips, a move set to bolster Samsung’s struggling foundry business and advance Tesla’s autonomous driving ambitions.

The announcement, confirmed by Tesla CEO Elon Musk on X, has sent Samsung’s shares soaring by 6.8% to their highest level since September 2024, while Tesla’s stock rose 1.9% in U.S. premarket trading.

Starting July 26, 2025, and running through 2033, Samsung’s new factory in Taylor, Texas, will churn out Tesla’s AI6 chips. These chips are the brains behind Tesla’s autonomous vehicles, Robotaxi project, and even its Optimus robots.

Musk said Tesla will work hand-in-hand with Samsung to make sure the chips are top-quality and the production process runs smoothly. This deal is a big deal for Samsung, which has been trying to catch up with rivals like TSMC in the booming AI chip market.

• Tesla and Samsung Sign $16.5 Billion AI Chip Deal to Boost Autonomous Tech
• Samsung to Manufacture Tesla’s AI6 Chips in $16.5 Billion Landmark Partnership
• Tesla Taps Samsung for AI Chip Production at Texas Plant, Backed by CHIPS Act

The Texas factory, set to kick off production in 2026, will create thousands of jobs in the U.S., from tech experts to factory workers. It’s part of a bigger push, backed by the CHIPS and Science Act, to bring chip manufacturing back to American soil. For Tesla, this means less reliance on TSMC and fewer worries about global supply chain hiccups. Experts say the deal, worth 7.6% of Samsung’s 2024 revenue, could help the company close the gap with its competitors.

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While this partnership powers up Tesla’s AI plans, it won’t instantly solve its slower EV sales or speed up its Robotaxi rollout. Still, it’s a huge step toward strengthening U.S. chip production and building closer ties between U.S. and South Korean tech leaders. As Tesla races toward an AI-driven future and Samsung works to revive its chip business, this $16.5 billion deal could shape the next big wave of tech innovation.