US EditionTesla to streamline its AI chip design work, Musk says
TAYLOR, TEXAS, UNITED STATES, AUG 11 – Samsung's $50 billion US investment includes a $16.5 billion Tesla AI chip order and Apple image sensor production, creating thousands of jobs and boosting domestic chip manufacturing.
- In July 2025, Tesla CEO Elon Musk revealed a $16.5 billion agreement with Samsung Electronics to produce AI6 chips for Tesla's autonomous driving systems in the United States.
- This deal followed Tesla's decision to shut down its in-house Dojo AI chip program and focus resources on external manufacturing due to Dojo 2 being an evolutionary dead end.
- Samsung is developing a large-scale semiconductor manufacturing facility in Taylor, Texas, set to begin operations in early 2026, which will play a key role in meeting Tesla’s chip demand and advancing U.S. technological self-reliance.
- The global market for AI chips is expected to expand notably from 2024 to 2025, increasing from $123.6 billion to $166.9 billion, while Elon Musk highlighted Tesla’s promising growth prospects in AI despite abandoning its own chip design efforts.
- This partnership strengthens U.S. semiconductor infrastructure, ensures Tesla’s supply chain, and represents a strategic shift toward domestic AI hardware production with major economic impact.
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TechCrunch
technewstube.comElon Musk confirms shutdown of Tesla Dojo, ‘an evolutionary dead end’
“Once it became clear that all paths converged to AI6, I had to shut down Dojo and make some tough personnel choices, as Dojo 2 was now an evolutionary dead end,” Musk posted on X, the social media platform he owns, on Sunday.
Elon Musk Says 'Epic Outcome' Ahead For Tesla As Company Scraps Dojo In-House AI Program - Samsung Electronics Co (OTC:SSNLF), Tesla (NASDAQ:TSLA)
Elon Musk sees potential for significant AI growth for Tesla despite scrapping in-house chip efforts. Dojo program ends with Samsung deal.
Investment will help avoid additional duties.
Tesla’s Dojo Isn’t Dead: A Deeper Look at the Pivot to AI6
Headlines from Bloomberg paint a dramatic picture: Tesla is disbanding its Dojo supercomputer team, its leader is leaving, and a key AI effort has been unwound. On the surface, it’s a shocking development for a project that analysts once suggested could add $500 billion to Tesla’s value. However,…
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