Tesla Strikes 16.5 Billion Dollar AI Chip Deal With Samsung
- Ishaan Satija
- Jul 29
- 1 min read
Tesla stock climbed Monday after CEO Elon Musk confirmed a $16.5 billion multiyear deal with Samsung to produce Tesla’s next-gen AI6 chips. The chips will be made at Samsung’s Texas fab and used in Tesla's Optimus robot, autonomous vehicles, and AI data centers. Musk said the true value of the deal will “likely [be] much more,” and noted that Tesla will help improve manufacturing efficiency.
Samsung, without naming Tesla, said the deal accounts for nearly 8% of its 2024 revenue and spans through 2033. The agreement comes as Tesla eyes expansion of its Robotaxi service, with its app now listing California as an option. Reports suggest the San Francisco pilot will involve safety drivers, similar to Tesla’s supervised program in Austin.
Tesla stock gained more than 3% Monday, rebounding after a tough week. Shares remain down 19% for the year and 33% below their all-time high. Despite recent volatility, Tesla is up 37% since its Q1 earnings call, primarily driven by optimism surrounding its AI and Robotaxi initiatives. As Tesla deepens its AI bets, this Samsung partnership could mark a pivotal step forward in its long-term growth strategy.
