Tesla has signed a $16.5 billion deal to acquire Samsung’s next-generation chips, primarily from the company’s Taylor, Texas, facility. 

“Samsung’s giant new Texas fab will be dedicated to making Tesla’s next-generation AI6 chip,” Elon Musk posted on X. “The strategic importance of this is hard to overstate.”

AI6 chips, the latest iteration of the custom silicon, will power Tesla’s self-drive vehicles, robots, and AI infrastructure.

The deal is a boost for Samsung’s plant, which struggled to get its chip-making project off the ground after failing to attract and retain major clients. Musk said in another post that Tesla may end up spending more than $16.5 billion on Samsung chips. 

The contract runs through 2033 and makes Samsung the primary foundry partner for the AI6, with production based at the electronics company’s facility in Taylor, Texas. Samsung has agreed to let Tesla oversee much of the chip production. Musk says he will walk the chip fabrication line himself and has been authorized by Samsung to assist in optimizing production.

Buy, Build, Sell, Hold – The clock’s ticking! Be in the room when forward thinking developers and investors explain how they are capitalizing on market shifts—new construction, repositionings, acquisitions, and more. Register to attend Connect Texas Multifamily now, before the discounted pricing ends on Thursday – and be there to hear how the industry leaders are turning today’s challenges into long-term opportunity and positioning for the next wave of multifamily growth. www.ConnectTXMF2025.com | EVENT DATE: Thursday, August 28^th | VENUE: The Joule, Dallas