Tesla CEO Elon Musk announced on July 28 that he will take a hands-on role in overseeing a new $16.5 billion partnership with Samsung Electronics to produce Tesla’s next-generation AI6 chip. The chips will be manufactured at Samsung’s upcoming facility in Taylor, Texas, expected to open in 2026.
Musk wrote on social media platform X, “Samsung agreed to allow Tesla to assist in maximizing manufacturing efficiency… I will walk the line personally to accelerate the pace of progress.” He noted the plant’s proximity to his residence as a key factor in his direct involvement.
The agreement, set to run through 2033, aims to strengthen Samsung’s underperforming foundry division, which currently holds just 8% of the global market, far behind Taiwan’s TSMC at 67%. Following the announcement, Samsung shares rose 6.8%, and Tesla’s stock gained 4.2%.
Musk’s decision to take a personal role echoes his past “wartime CEO” tactics, including staying at Tesla factories during critical production phases and taking control of X (formerly Twitter) after acquiring it. While some see this move as a return to his “founder mode,” others, such as X user @JoeGKushner, questioned whether Musk’s personal oversight will be effective without clear operational systems in place.
The deal comes as Tesla works to rebound from a 12% revenue decline in Q2 2025, shifting focus toward AI technologies for autonomous driving and robotics. Samsung already manufactures Tesla’s current AI4 chips, while TSMC is set to begin producing AI5 chips from 2026.
Analysts view the partnership as strategically important for both companies. Ryu Young-ho of NH Investment & Securities described it as “quite meaningful” for Samsung’s Texas plant, which has operated below capacity. However, no timeline has been given for AI6 production, and Tesla’s history of delays has prompted questions about the project’s execution.
The partnership highlights Tesla’s increasing investment in AI and Samsung’s push to expand its role in the high-performance chip market.
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