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

  • Tesla CEO Elon Musk announced on July 28, 2025, a $16.5 billion multiyear chip supply deal with Samsung to source AI chips in Texas.
  • The deal follows Samsung's prior announcement of a supply agreement without naming its client, which was later confirmed as Tesla to protect trade secrets.
  • Samsung's new fabrication facility in Taylor, Texas, set to begin operations in 2026, has been tasked with manufacturing Tesla's upcoming AI6 chip, with Tesla playing a role in enhancing production efficiency.
  • Musk indicated that the $16.5 billion estimate represents a baseline and anticipates the final amount to be multiple times greater, emphasizing his personal commitment to driving faster advancement in the project.
  • The deal aims to help Samsung narrow losses in its contract chip business amid rising competition, while Samsung shares surged nearly 7% on the Korean stock exchange after news of the agreement.
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The CEO of the company explained that the Korean company will be responsible for manufacturing the AI6 chip at its Taylor, Texas plant.

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