Elon Musk: Importance of $16.5B Samsung-Tesla Deal is ‘Hard to Overstate’

Samsung will produce AI6 semiconductors, the next-generation chip, for Tesla’s self-driving mode and other projects.

Samsung will produce the AI semiconductors for Tesla self-driving vehicles, Bloomberg revealed on Monday. The $16.5 billion contract is expected to strengthen Samsung’s foundry unit, which has struggled with underutilization in recent quarters. The agreement will last through 2033.

“The strategic importance of this is hard to overstate,” Musk wrote on X on Sunday. He also described the deal as “just the bare minimum. Actual output is likely to be several times higher.”

Chips should improve Tesla’s self-driving mode

The next-generation AI6 chips will serve as the core hardware for Tesla’s self-driving system, which relies on advanced cameras, sensors, and neural network processing. The AI6 could also be used in upcoming humanoid robots and AI data centers.

Vehicles equipped with Full Self-Driving Mode can navigate with minimal human ...