Tesla has entered into a major chip-making deal with Samsung worth 16.5 billion dollars, marking a big step forward in its plans to become a major player in both artificial intelligence and robotics. According to Elon Musk, the deal will centre around Samsung’s new chip factory in Texas, which will be fully dedicated to producing Tesla’s latest chip, the AI6. This new chip is designed to power a range of Tesla products, from its Full Self Driving system to its humanoid robot called Optimus, and even the AI systems used in Tesla’s data centres.
This partnership gives Samsung a strong boost after years of struggling to attract major chip clients. Musk has hinted that Tesla may spend even more than the initial 16.5 billion dollars, depending on production needs. He also mentioned that Tesla will work closely with Samsung to improve manufacturing efficiency, even stating he will personally oversee progress. The location of the Samsung facility, not far from Musk’s residence, adds convenience and reflects how involved he plans to be in this phase of Tesla’s growth.
At the same time, Tesla is continuing work with TSMC, another leading chipmaker, to produce the AI5 chip, which has just completed its design phase. The AI5 will be used mainly for Tesla’s Full Self Driving system and will first be made in Taiwan, before moving production to TSMC’s Arizona plant. Samsung, meanwhile, is already making Tesla’s AI4 chip, showing how deeply embedded both chipmakers are in Tesla’s plans.
Tesla has come a long way since it stopped relying on Nvidia in 2019 and began building its chips. Its first custom chip, the FSD Computer or Hardware 3, was made by Samsung and introduced in all-new Tesla vehicles that year. This chip was built with safety in mind, using two mirrored systems to provide backup in case one fails. Since then, Tesla has steadily increased its focus on custom chip design to match its growing AI ambitions.
Now, with its eyes set on robots and high-performance AI, Tesla’s chips are becoming more than just components; they are the foundation of the company’s future. By partnering with Samsung and TSMC, Tesla is investing not just in products but in the long-term infrastructure that could one day power self-driving cars, intelligent machines, and more. This latest deal shows just how far the company has moved beyond its origins as a carmaker.
