Tesla signs $16.5B Samsung Chip Deal and It Is not Just for Cars

Tesla’s future isn’t just electric, it is silicon, and Samsung has the recipe.

Nkeiru Ezekwere
5 Min Read

From EVs to humanoid robots, Tesla’s next-gen chip is doing everything, and Samsung is making it. Tesla has officially entered its “we’re building the future of everything” era, and it is bringing Samsung along for the ride. Late Sunday night, Elon Musk jumped on X (because where else?) to casually drop the news that Tesla signed a $16.5 billion deal with Samsung to manufacture its new AI6 chip, a custom-designed, do-it-all silicon brain for everything Tesla dreams of: smarter self-driving cars, factory robots, AI training, possibly even your next robot roommate.

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

Translation: Tesla is doubling down on its plan to stop being just a car company and start being, well, the everything company.

What is the Tesla AI6 chip?

Tesla’s AI6 (aka Hardware 6) is more than just another chip. This is a single-chip architecture that aims to power everything in Tesla’s growing universe:

  • It is a controversial Full Self-Driving system (now labeled “Supervised” because, lawyers).
  • The Optimus humanoid robot, which may or may not eventually fold your laundry.
  • Data center-grade AI training, because of course, Tesla wants to get into that too.

In short, Tesla is trying to do what Apple did with the M-series: build its own, tightly integrated chips to run its own hardware and software stack. Only instead of MacBooks, we’re talking about cars, robots, and possibly robot-driven cars.

The chips will be built at Samsung’s brand-new fab in Texas, a facility that has reportedly had a hard time landing big clients. Until now. This deal is not just big, it is strategic. Samsung already makes Tesla’s current FSD chips (AI4), and now they are graduating to the big leagues with AI6. Musk even teased that the $16.5B price tag could end up being “several times higher”, depending on output.

And yes, Musk added that he plans to “walk the line” at the fab to help speed things along, because he has time for that, and also because it’s close to his house. Of course. If you are wondering where Taiwan Semiconductor (TSMC) fits into all this, do not worry; they are still on the chip party invite list.

Related: Space X dropped $2Billion on xAI. Musk’s AI play is no longer just talk.

Tesla’s AI5 chip, which just wrapped its design phase, is being produced by TSMC, first in Taiwan, and then in Arizona. AI5 will focus on powering the next-gen FSD software, and probably act as a stepping stone before AI6 takes over completely.

So essentially:

  • AI4: Samsung (current gen, powering today’s FSD)
  • AI5: TSMC (coming soon, optimized for FSD)
  • AI6: Samsung again (future-proof, runs cars and robots)

Back in 2019, Tesla ditched Nvidia’s Drive platform and went all-in on custom silicon. That chip, called Hardware 3, debuted in every Tesla EV that year and was also built by Samsung. It featured dual-redundancy, basically two brains on one board, a must-have for any system that might be driving you at 70mph.

Since then, Tesla’s ambitions have only scaled up. And its chip strategy is now central to its larger identity shift, from an electric car company to an AI and robotics company that happens to sell cars.

This Samsung deal is a clear signal: Tesla isn’t just building the vehicles of the future, it wants to own the brain inside them too. With $16.5 billion on the table, custom chips in the works, and robots on the horizon, Tesla is not just trying to out-tech the car industry; it is gunning for everyone. So here is the real question: When your car, your robot, and your data center are all powered by the same chip… who is driving?

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