Tesla CEO Elon Musk confirmed a long-term partnership with Samsung Electronics, under which Samsung’s new Texas fabrication plant near Austin will produce Tesla’s custom-designed AI6 chips, used for advanced autonomy and robotics. The deal—set to extend through 2033—is valued at $16.5 billion, with potential for growth if Tesla ups its demand.
This move comes at a pivotal moment, as Samsung’s foundry business has repeatedly struggled with delays and lackluster client adoption. The new agreement provides a high-profile anchor customer and a lifeline for the Texas facility, which had previously been idle.
From Tesla’s perspective, aligning with Samsung not only secures access to in-house AI chip production but also reduces reliance on external suppliers, improving efficiency and control over its core hardware stack. Musk even pledged to personally oversee operations to accelerate the rollout.
