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Tesla and Samsung Seal $16.5B AI6 Chip Deal in Texas

TAYLOR, TEXAS, USA, JUL 29 – The $16.5 billion contract secures Samsung a major customer through 2033 and supports Tesla's AI ambitions in autonomous driving and robotics, representing 7.6% of Samsung's 2024 sales.

  • Tesla signed a $16.5 billion deal on July 26, 2025, with Samsung to source AI6 chips produced at Samsung's Texas fab opening in 2026.
  • Samsung withheld the client's name until the end of 2033 to protect trade secrets, but Musk confirmed Tesla's involvement publicly on July 28, 2025.
  • Samsung agreed to let Tesla assist in maximizing manufacturing efficiency, with Musk pledging to accelerate progress and noting the fab's proximity to his home.
  • Musk described the $16.5 billion figure as the minimum, expecting actual volume several times higher, while Samsung shares surged nearly 7% on the news.
  • The multiyear deal running through 2033 aims to bolster Samsung's contract chip business amid mounting competition and is critical for Tesla's next-generation AI chip production.
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Elon Musk Announces Samsung’s New Texas Plant to Produce Chips for Tesla and its Artificial Intelligence Project

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NBC LA broke the news in Los Angeles, United States on Sunday, July 27, 2025.
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