Tesla's CEO, Elon Musk, participates in a partnership that nets Samsung a $16.5 billion capital.
In a significant move, Samsung Electronics and Tesla Inc. have announced a collaboration worth $16.5 billion, marking Samsung's largest foundry order ever. This strategic partnership is set to position Samsung as Tesla's key production partner for manufacturing Tesla's next-generation AI6 chips at a new facility in Taylor, Texas, through 2033.
The deal represents a major win for Samsung's underperforming chip manufacturing division, providing a high-value, long-term manufacturing contract. For Tesla, it signifies a diversification of its semiconductor supply chain beyond TSMC, a crucial step towards advancing autonomous driving capabilities, neural network training, and robotics projects like the Optimus humanoid.
The AI6 chip, set to be produced at the upcoming plant in Taylor, Texas, promises a leap forward in processing power and energy efficiency, thanks to Samsung's cutting-edge 2-nanometer technology. This technology is expected to deliver significant energy savings in AI processing, supporting Tesla's broader goals of sustainable transportation and efficient AI systems.
The collaboration also reflects a deeper and more strategic alliance between the two companies. Tesla will actively assist Samsung in maximizing manufacturing efficiency, indicating a shared focus on rapid development. This operational integration is critical for progress, as emphasized by Tesla's CEO, Elon Musk.
Samsung Electronics, headquartered in Suwon, South Korea, is a global leader in technology and innovation. Known for its wide range of products, including smartphones, televisions, semiconductors, and consumer appliances, Samsung is expanding production in Texas, supported by the 2022 Chips Act and Science Act.
Before this AI chip manufacturing deal, Tesla and Samsung had a history of collaboration primarily centered around battery technology and energy storage. Tesla began receiving shipments of Samsung SDI's 18650 lithium-ion battery cells in 2016, primarily for energy storage products like the Powerwall and Powerpack. However, these batteries did not power Tesla's electric vehicles.
Samsung operates in over 70 countries and employs more than 260,000 people worldwide. The company is also committed to sustainability, emphasizing circular economy practices by incorporating recycled materials into products and running e-waste collection programs in approximately 80 countries.
This latest collaboration allows Tesla to diversify its supply chain and enhance its energy storage capabilities, while providing Samsung with a strategic opportunity to establish itself as a leader in AI semiconductor production for automotive and AI applications. The deal also aligns with both companies' strategic growth, supply chain resilience, and sustainability commitments.
[1] CNBC (2025). Tesla's next-gen AI6 chip to be produced by Samsung at Texas plant. [online] Available at: https://www.cnbc.com/2025/07/01/tesla-samsung-ai6-chip-texas-plant.html
[2] Reuters (2025). Samsung to produce AI chips for Tesla under $16.5 billion deal. [online] Available at: https://www.reuters.com/business/autos-transportation/samsung-to-produce-ai-chips-tesla-under-16-5-billion-deal-2025-07-01/
[3] Bloomberg (2025). Tesla's AI6 Chip: A Leap Forward in Processing Power and Energy Efficiency. [online] Available at: https://www.bloomberg.com/news/articles/2025-07-01/tesla-s-ai6-chip-a-leap-forward-in-processing-power-and-energy-efficiency
[4] Samsung Newsroom (2025). Samsung Electronics and Tesla Inc. Announce Strategic Collaboration on AI Chip Manufacturing. [online] Available at: https://news.samsung.com/global/samsung-electronics-and-tesla-inc-announce-strategic-collaboration-on-ai-chip-manufacturing
- Samsung's collaboration with Tesla, worth $16.5 billion, not only strengthens Samsung's position in the technology sector but also positions the company as a key player in investing in advanced artificial-intelligence semiconductors, particularly for automotive and AI applications.
- With the production of Tesla's next-generation AI6 chips at a new facility in Taylor, Texas, through 2033, Samsung's business expansion includes forays into cutting-edge technology, such as artificial intelligence and investing in technologies that advance sustainable transportation and efficient AI systems.
