Tesla boss Elon Musk has announced that he has signed a partnership with Samsung for its upcoming self-driving chip manufacturing in the United States.
The partnership centers on Tesla’s future “AI6” chip, the brain that will eventually power the company’s most advanced driver-assistance systems. These powerful processors will be manufactured at Samsung’s new, state-of-the-art facility in Taylor, Texas. According to the announcement, the $16.5 Billion agreement will run through the end of 2033.
Elon Musk said on X that this figure is just a starting point, the $16.5 Billion number is just the bare minimum, actual output is likely to be several times higher.
Dojo which was launched in 2021 with Tesla’s custom D1 chip, was meant to power the company’s Autopilot, Full Self-Driving systems, and Optimus humanoid robot. But Musk ordered the team to disband, reassigning engineers to other projects, including data centers. The shift will increase Tesla’s reliance on partners such as Nvidia, AMD, and Samsung Electronics, the report noted.
In July, Samsung announced a record USD 16.5 billion contract to produce Tesla’s AI6 chips through 2033 at its Taylor, Texas, plant. Musk also revealed holding a video call with Samsung Electronics Chair Lee Jae-yong “to go over what a real partnership would be like.”
Lee, who has been in the US since the July 29 meeting with business leaders, is now at the Centre of speculation about a possible meeting with Tesla’s top executives. “In the past, foundries only shared processes and manufacturing, but they are now evolving to also share design.
An official authority said that Samsung has long-standing capabilities in design, so there are many areas where it could collaborate with Tesla.
The US-South Korea tech collaboration also arrives as both nations explore broader trade partnerships, including potential tariff reductions. Samsung is expected to release earnings later this week.
The deal will run through December 31, 2033, and involve production of the Tesla AI6 (formerly HW6) processor, which is used to manage and self-drive Tesla cars, at Samsung’s upcoming semiconductor production facility in Taylor.
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The AI6 processor is projected to ship towards the end of the decade and replaces the company’s next-gen AI5 processor, which is expected to enter mass production in 2026.