Tesla Secures $16.5B Samsung AI Chip Deal to Accelerate FSD Development

Tesla Inc. has inked a $16.5 billion agreement with Samsung Electronics to produce AI6 chips through 2033, signaling a major leap in its autonomous vehicle ambitions. Production will be housed at Samsung’s Texas facility, with CEO Elon Musk personally overseeing fabrication line optimization. The deal, which Musk describes as "just the bare minimum," could ultimately surpass its stated value in output.

The partnership injects vitality into Samsung’s foundry unit, which has struggled with just 7.7% market share against TSMC’s dominance. For Tesla, the AI6 chips are critical to achieving its late-2026 target for Full Self-Driving technology rollout. TSLA shares ROSE 3.9% to $328.40 on the news, reflecting market confidence in Tesla’s vertically integrated approach to autonomy.