Tesla Taps Samsung To Build AI6 Chips In $16.5B Deal, Musk Says Output May Exceed Projections

Benzinga

Samsung Electronics will manufacture Tesla’s next-generation AI6 chips under a $16.5 billion contract through 2033, according to Bloomberg. The chips will be produced at the company’s Texas plant, currently slated to begin operations in 2026. Tesla CEO Elon Musk confirmed the deal, calling it “just the bare minimum,” and said actual output could be several times higher. The deal marks Samsung’s biggest foundry win since Executive Chairman Jay Y. Lee was cleared of legal charges. It positions the company as a stronger alternative to TSMC, which still holds a dominant 67.6% market share. The AI6 chip is expected to power Tesla’s self-driving systems. Samsung’s shares surged 6.8% on the news, while supplier Soulbrain jumped 16%.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:02Samsung Electronics will manufacture Tesla's next-generation AI6 chips

00:06under a $16.5 billion contract through 2033.

00:11According to Bloomberg, chips will be produced at the company's Texas plant,

00:15currently slated to begin operations in 2026.

00:18Tesla CEO Elon Musk confirmed a deal, calling it just the bare minimum,

00:21said actual output could be several times higher.

00:24Deal marked Samsung's biggest boundary win since executive chairman

00:27J.Y. Lee was cleared of legal charges, positions the company as a stronger alternative to TSMC,

00:32which still owns a dominant 67.6% market share.

00:36The AI6 chip is expected to power Tesla's self-driving systems.

00:40Samsung shares surged 6.8% on the news, while supplier Soulbrain jumped 16%.

00:45For all things money, visit Benzinga.com.

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