By Key Points
- Powerful Samsung Tesla AI6 Chip Deal Worth $16.5B Confirmed
- AI6 chips to be built at Samsung’s Texas fab from 2026
- Elon Musk calls the deal “strategically critical.”
- Chips will power Tesla’s FSD, robots, and data centers
Samsung Electronics has secured a massive $16.5 billion deal with Tesla to manufacture its next-gen AI6 chips, which will power Tesla’s upcoming wave of Full Self-Driving (FSD) capabilities, humanoid robots, and possibly even data center infrastructure.
The chips will be produced at Samsung’s advanced fab in Taylor, Texas, slated to go online in 2026.
Tesla CEO Elon Musk confirmed the eight-year deal on X, saying, “Samsung’s giant new Texas fab will be dedicated to making Tesla’s next-generation AI6 chip. The strategic importance of this is hard to overstate.”
This announcement follows a wave of AI and chip news, including rumors that GPT-5 may launch in August with major performance upgrades, and discussions about increasing investment in AI compute infrastructure.
The Samsung-Tesla collaboration strengthens an existing relationship. Samsung currently produces Tesla’s AI4 chips (Hardware 4), which support in-car inference for FSD.
Meanwhile, rival TSMC is manufacturing the AI5 chips at its Arizona fab. The AI6 chip, however, aims to go beyond—supporting both vehicle-based AI systems and video-based model training for autonomous driving.
Interestingly, Musk noted the $16.5 billion figure is just a starting point: “Actual output is likely to be several times higher,” he wrote, hinting at possible expansions across Tesla’s product lines.
The $16.5B number is just the bare minimum. Actual output is likely to be several times higher.
— Elon Musk (@elonmusk) July 28, 2025
Samsung’s Texas Fab Gets a Game-Changing Boost
Samsung’s Texas chip facility has been a work in progress since its announcement, facing multiple delays due to upgrades and customer uncertainty.
Initially scheduled to open in 2024, construction was halted to transition from a 4nm to a 2nm process — essential to compete with TSMC and stay relevant in the AI chip race.
Samsung’s giant new Texas fab will be dedicated to making Tesla’s next-generation AI6 chip. The strategic importance of this is hard to overstate.
Samsung currently makes AI4.
TSMC will make AI5, which just finished design, initially in Taiwan and then Arizona.
— Elon Musk (@elonmusk) July 28, 2025
This new deal with Tesla couldn’t have come at a better time. The Taylor fab, one of two Samsung is building in Texas under a $40 billion US investment, will now have a high-profile anchor client that aligns with its advanced manufacturing goals.
This move mirrors how other tech giants like OpenAI have recently secured infrastructure deals, such as the OpenAI and Oracle partnership to scale AI operations.
Musk emphasized Tesla’s active role in manufacturing, saying, “Samsung agreed to allow Tesla to assist in maximizing manufacturing efficiency… I will walk the line personally to accelerate the pace of progress.” With the fab located near Musk’s home, he suggested hands-on oversight.
🚨 BREAKING: Elon has confirmed that Tesla and Samsung has signed a $16.5 billion deal to produce Tesla’s AI6 chips in Texas. pic.twitter.com/Yh8AyT7iGy
— Muskonomy (@muskonomy) July 28, 2025
Leadership changes at Samsung are also a factor. In March 2025, Margaret Han, a former TSMC and Intel executive, was appointed to lead Samsung’s North American chip foundry operations.
Since then, several California-based job listings have surfaced, hinting at aggressive growth and recruitment for the upcoming workload.
Samsung’s renewed push mirrors broader tech trends, such as Meta’s recent leadership moves. For instance, Meta named Shengjia Zhao to lead its generative AI safety efforts, reflecting how major players are reorganizing for the AI age.
NEWS: Elon confirmed that Tesla signed a ~$16.5B deal (likely more) w/ Samsung to produce Tesla’s AI6 chip in Texas. He will also be walking the lines personally to accelerate the pace of progress.
This is a BIG deal for both Tesla and Samsung.
— Teslaconomics (@Teslaconomics) July 28, 2025
What the AI6 Chip Means for Tesla’s AI Vision
The AI6 chip could become the brain behind not only Tesla’s FSD systems but also its humanoid robot project, which Elon Musk has hinted at repeatedly.
On Tesla’s Q2 2025 earnings call, he revealed plans to possibly use the AI6 in Tesla’s data centers to train its video-based AI models, reducing dependence on third-party cloud providers.
Tesla is clearly aiming to go beyond cars. The company wants to control both the hardware and software stacks of its AI systems, much like how Google recently emphasized alignment and performance in its AI development guidelines.
With a chip designed specifically for Tesla’s needs, the company can scale faster and potentially explore licensing opportunities for robotics, AI logistics, or smart manufacturing.
This vertical integration, manufacturing hardware via Samsung and building software in-house, gives Tesla a strategic advantage.
Moreover, the growing concern around ethical AI and governance is already influencing how chips and models are developed.
As governments explore initiatives like the Anti-Woke AI Order, Tesla and Samsung’s collaboration could become a model for how custom AI hardware aligns with regulatory and societal expectations.
This eight-year deal sets the stage for a bold new chapter in Tesla’s evolution as not just an automaker, but a full-scale AI company.
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