Elon Musk has confirmed that Tesla has signed a $16.5 billion contract with Samsung Electronics for semiconductor chips. The deal will run from July 26, 2025, to December 31, 2033, according to a regulatory filing by Samsung.
Samsung did not name the customer in the filing, citing trade secrecy. However, Musk later revealed on social media platform X that Tesla is the buyer.
Musk said Samsung’s new chip factory in Texas will produce Tesla’s next-generation AI6 chip, a key component for the company’s future vehicles. Samsung is already producing the current AI4 chip for Tesla, while TSMC will handle the AI5 chip.
“This is a strategic partnership,” Musk said. “Samsung agreed to let Tesla help improve factory efficiency, and I’ll personally oversee the progress.”
He also suggested the final value of the deal could exceed $16.5 billion.
Samsung is the second-largest chip foundry in the world, behind Taiwan’s TSMC. It makes chips designed by other companies, including those used in electric vehicles and AI technology.
The deal comes as Samsung prepares to start 2-nanometer chip production, which allows for smaller, faster, and more efficient processors.
Samsung’s shares jumped over 6% on Monday, reaching their highest price since September 2024. Tesla stock also rose following the news.
The chip deal is a major step for both companies. It helps Samsung boost its foundry business and supports Tesla’s push to develop faster, smarter electric vehicles powered by advanced AI chips.
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