Musk said the “$16.5 number is just the bare minimum,” and the actual input will likely be “several times higher.”
TAYLOR, Texas — Tesla CEO Elon Musk has announced a $16.5 billion chip supply deal with Samsung that will have a local impact.
In a post on X, Musk said Samsung’s new factory in Taylor will produce Tesla’s next-generation AI6 chip. Samsung currently makes the AI4, while TSMC just finished the design for the AI5.
“The strategic importance of this is hard to overstate,” Musk said of the Samsung deal.
Musk added that Samsung has agreed to allow Tesla to “assist in maximizing manufacturing efficiency,” but didn’t specify whether Tesla would assist in bringing the Samsung factory into operation.
“This is a critical point, as I will walk the line personally to accelerate the pace of progress,” Musk said. “And the fab is conveniently located not far from my house.”
According to Musk, the “$16.5 number is just the bare minimum” and the actual input will likely be “several times higher.”
Reuters reports that Samsung shares soared nearly 7% Monday after news of the deal, which Bloomberg reports will run through 2033.
The chip factory in Taylor is scheduled to begin operations next year.
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