A $16.5B Samsung Partnership and What It Really Means
In July 2025, Tesla signed a massive $16.5 billion contract with Samsung to produce its next-generation AI chip, known as AI6, at Samsung’s semiconductor fab in Taylor, Texas.
This move marks more than just a manufacturing partnership — it reflects Tesla’s ambition to redefine its role in the AI and robotics ecosystem. So what is AI6, and why does it matter?
🧠 What is AI6?
AI6 is Tesla’s custom-designed unified AI processor, built to serve as the core hardware for three of its most groundbreaking initiatives:
- Full Self-Driving (FSD) software in Tesla vehicles
- The humanoid robot Optimus
- The company’s AI training platform, Dojo
Rather than building separate chips for each domain, Tesla is pursuing a “one chip for all” architecture — streamlining development and deployment across its product lines.
🏭 Why Partner with Samsung?
Tesla has worked with Samsung before — notably for the production of its AI4 chip. The intermediate AI5 chip is currently being produced by TSMC. But with AI6, the partnership is taking a major step forward:
- ✅ A dedicated Tesla production line at Samsung’s Texas facility
- ✅ A nine-year contract through 2033
- ✅ Elon Musk personally involved in overseeing chip manufacturing
This deal not only gives Tesla greater control over its chip supply, but also strengthens domestic production within the U.S., reducing exposure to geopolitical risks.
🔌 Is Tesla Trying to Ditch NVIDIA?
Many leading AI startups and Big Tech firms rely heavily on NVIDIA’s H100 and H200 GPUs — and Tesla is no exception.
While Tesla has designed and deployed its own in-vehicle FSD chips since 2019, it still relies heavily on NVIDIA GPUs to train its AI models — including those used for self-driving capabilities and the Dojo supercomputer.
The introduction of AI6 may signal a broader strategic shift — not just toward inference independence, but toward owning the full AI hardware stack, from vehicles to training clusters.
📈 Final Thoughts: Tesla Is No Longer Just a Car Company
AI6 is more than just a chip. It represents Tesla’s evolution into a vertically integrated AI and robotics company.
By locking in a long-term partnership with Samsung and investing in scalable, in-house AI chip design, Tesla is working to control every layer of its AI infrastructure — not unlike how it vertically integrated battery production and vehicle software.
In doing so, the company is positioning itself not just for leadership in electric vehicles, but for AI dominance in a multi-domain future.