Tesla has struck a $16.5 billion agreement with Samsung Electronics to produce its next-generation AI6 chips at the company’s Taylor, Texas plant. CEO Elon Musk announced the deal Sunday, calling it “a critical point” for both companies and vowing to personally oversee production to accelerate progress.
The partnership provides a major boost to Samsung’s struggling contract chip business, which has faced delays and a lack of major customers. Samsung shares jumped 6.8% Monday on expectations the order could strengthen its position in the competitive artificial intelligence chip market, where it lags behind TSMC.
Despite the size of the deal, analysts say the move will not solve Tesla’s near-term problems, including falling EV sales and the slow rollout of its robotaxi program. Production of the AI6 chips is still years away. Musk has previously indicated that AI5 chips will be in production by late 2026, suggesting the AI6 line may not arrive until 2027 or later.
“Samsung agreed to allow Tesla to assist in maximizing manufacturing efficiency,” Musk wrote on X, adding that the $16.5 billion figure is “just the bare minimum” and that the total output could be several times higher.
Samsung’s Texas plant has suffered repeated setbacks and was recently delayed to 2026 due to a lack of clients. Analysts said Tesla’s order is “quite meaningful,” although it may represent only a small portion of Samsung’s overall logic chip revenue.
The deal comes as South Korea seeks stronger U.S. partnerships in chips amid trade talks to avoid potential 25% tariffs. However, Seoul’s trade ministry said it had not heard of this specific contract being linked to the negotiations.
Samsung currently supplies Tesla’s AI4 chips for its Full Self-Driving system, while TSMC is set to produce AI5 chips in Taiwan and Arizona. Musk has said the AI6 line will power Tesla’s self-driving cars, Optimus humanoid robots and potentially other high-performance AI applications.
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