has renewed its AI chip partnership with Tesla in a deal that's worth $16.5 billion.

The deal was first spotted in a July 27 regulatory filing from Samsung that didn't specify the partner company. Tesla CEO Elon Musk, however, soon confirmed on X that it's his company.

"Samsung’s giant new Texas fab will be dedicated to making Tesla’s next-generation AI6 chip," he tweeted. "The strategic importance of this is hard to overstate.”

Samsung has been building a new plant in Texas that was initially supposed to open in 2024, but that might not happen until 2026. According to Nikkei Asia, Samsung has struggled to find enough customers to justify opening the new plant.

Musk also confirmed that Tesla will be involved in “optimizing” the production process for Samsung at the Texas factory. He says he’ll be walking the fabrication line himself, and confirms the location is near to his own home.

Samsung is producing the current A14 chip for Tesla, while TSMC won the deal to produce the A15 chip. For the A16, Samsung will be back onboard. This new deal lasts until 2033, so it's likely designed to keep Samsung producing the A17 and beyond.

Tesla’s robotaxis first debuted last month in Austin, Texas, with safety drivers onboard. Over the weekend, Tesla confirmed it's also testing its self-driving vehicles in the United Kingdom with examples in London and Swindon. That second location includes a difficult roundabout, which will be one of the big challenges for autonomous cars making their way to the UK.

By: DocMemory
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