Elon Musk has confirmed a major deal between Tesla and Samsung Electronics worth €14.08 billion. Under this agreement, Samsung will build Tesla’s next-generation AI chips, which will play a key role in the future of self-driving cars and electric vehicles.
Tesla’s Vehicles to Embrace AI6 Chip By Samsung
The new chip, called AI6, is set to power Tesla’s upcoming driver-assistance systems. Samsung will produce it at its advanced factory in Taylor, Texas. The deal is expected to last through the end of 2033. Musk also hinted that this amount might just be the beginning. In a post on X, he said, “The €14.08 number is just the bare minimum. Actual output is likely to be several times higher.”
For Samsung, this contract is a big win. Its chip-making division, known as the foundry business, has been struggling. The Taylor plant had few, if any, confirmed clients, and Samsung had delayed deliveries of equipment from suppliers like ASML. Some experts even said the foundry lost over €3 billion in the first half of this year alone. This Tesla deal changes that, giving Samsung a reliable customer and boosting investor confidence. After the news broke, Samsung’s stock reached its highest level in almost a year.
AI5 Chip Is Currently Made by TSMC, But Samsung Will Resume Manufacturing in the Future
From Tesla’s side, this move helps the company avoid depending too much on just one chip supplier. Samsung already makes the AI4 chip used in current Tesla cars. For the next version, AI5, Tesla is working with TSMC, the top chip maker in the world. Now, with the AI6 chip, Samsung is back in the picture. One big advantage for Musk is that the Samsung plant is located close to where he lives. He joked that he could walk over and keep an eye on the progress himself.
Although the deal is official, there’s no exact date for when production will begin. The Texas factory’s opening has already been pushed to 2026. Since Tesla’s AI5 chip is planned for late 2026, experts believe the AI6 might start production in 2027 or 2028. But these dates could easily change, especially given Tesla’s track record of delays.
Right now, Samsung controls only 8% of the global chip-making market, while TSMC holds a massive 67%, building chips for companies like Apple and Nvidia. This Tesla deal gives Samsung a rare opportunity to grow its chip business and start competing more seriously with TSMC.
