Elon Musk has confirmed a massive $16.5 billion agreement between Tesla and Samsung Electronics to produce the automaker’s next-generation AI6/HW6 chip.
The multiyear deal, running through to 2033, will see Samsung manufacture the AI6 chips at its massive new fabrication facility in Taylor, Texas, just north of Austin, home to Tesla’s headquarters and Gigafactory.
The deal was first reported by Bloomberg, and later confirmed by Musk himself on his social media platform, X.
“Samsung’s giant new Texas fab will be dedicated to making Tesla’s next-generation AI6 chip. The strategic importance of this is hard to overstate,” Musk wrote.
Musk added that Tesla will work closely with Samsung to optimize manufacturing efficiency, saying that the proximity of Samsung’s new facility was a “critical” factor in the deal.
“I will walk the line personally to accelerate the pace of progress. And the fab is conveniently located not far from my house.”
The collaboration marks a significant shift in Tesla’s chip strategy. While Samsung currently produces Tesla’s AI4/HW4 chips, its upcoming AI5/HW5 generation is being handled by Taiwan Semiconductor Manufacturing Company (TSMC), with production beginning in Taiwan and later expanding to Arizona. AI5 is not expected to appear in Tesla vehicles until later into 2026, according to an update provided during last week’s earnings call.
The new AI6 chip is expected to play a critical role in Tesla’s ongoing push toward full autonomy and advanced AI applications. With Tesla heavily investing in self-driving technology and AI-powered robotics, the AI6 chip is anticipated to deliver significant performance improvements over previous hardware generations, although any tech or performance specs have not yet been revealed.
Samsung agreed to allow Tesla to assist in maximizing manufacturing efficiency.
— Elon Musk (@elonmusk) July 28, 2025
This is a critical point, as I will walk the line personally to accelerate the pace of progress. And the fab is conveniently located not far from my house
