Samsung to supply Tesla with AI chips in $16.5bn deal hailed by Musk
The Guardian
|July 29, 2025
Samsung has agreed a deal to manufacture artificial intelligence chips for Tesla, in a move announced by Elon Musk yesterday.
The South Korean tech company announced the $16.5bn (£12.3bn) contract with an unnamed client in a regulatory filing, with Tesla's chief executive giving further details on his social media platform, X.
Musk wrote that Samsung would produce Tesla's next-generation AI6 chips at a new plant in Texas. "The strategic importance of this is hard to overstate," he wrote.
The Biden administration last year announced $4.75bn in funding for Samsung's semiconductor facilities in Texas under the Chips Act, legislation aimed at making the US more self-sufficient in chip manufacturing.
This story is from the July 29, 2025 edition of The Guardian.
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