Tesla Strikes $16.5 Billion Deal with Samsung for Next-Generation Chips

Electric car manufacturer Tesla has recently announced a significant agreement with Samsung, securing a $16.5 billion deal for its upcoming AI6 chips. According to Tesla CEO Elon Musk, Samsung’s new Texas factory will be exclusively dedicated to producing Tesla’s next-generation AI6 chip. This chip, also known as Hardware 6, is designed to power various applications within Tesla's ecosystem, from driver assistance systems to high-performance AI training in data centers.

Additionally, Musk revealed that Tesla is collaborating with TSMC to develop the AI5 chips, with the A15 generation initially set to be produced in TSMC’s Taiwan and Arizona facilities. Notably, Samsung, which already manufactures the A14 chip, has reached an agreement with Tesla to potentially exceed the $16.5 billion spending. Furthermore, Musk expressed that Samsung has allowed Tesla to contribute to optimizing manufacturing efficiency, emphasizing the strategic significance of the partnership.

The move marks a significant shift for Tesla, as it transitioned from Nvidia’s Drive platform to its proprietary FSD Computer (FSDC) in 2019. The FSDC, developed by Samsung, plays a crucial role in Tesla's ambition to evolve from an automotive company to an AI and robotics enterprise.

Source: Tech Crunch