Tesla CEO Elon Musk announced today that his company has signed a $16.5 billion deal to source chips from Samsung Electronics. Following the announcement, Tesla shares increased by 1.9% in premarket trading.
As part of the deal, Musk announced that Samsung’s new chip factory in Taylor, Texas, will produce Tesla’s upcoming AI6 chip, renewing efforts on a project that has faced significant delays due to Samsung’s difficulties in securing and retaining key customers.
Tesla’s CEO wrote in a post on X today:
“Samsung agreed to allow Tesla to assist in maximizing manufacturing efficiency. This is a critical point, as I will walk the line personally to accelerate the pace of progress. And the fab is conveniently located not far from my house.”
“The $16.5B number is just the bare minimum. Actual output is likely to be several times higher,” Musk stated in an additional post.
The deal is expected to strengthen Samsung’s unprofitable contract manufacturing division.
Following the announcement, Samsung shares rose as much as 6.8%.
By CEO NA Editorial Staff
