Samsung Obtains $16.5 Billion Financing with Elon Musk's Tesla's Collaboration
Tesla and Samsung Announce Landmark AI Chip Manufacturing Deal
In a significant move for the tech industry, Tesla Inc. and Samsung Electronics Co. have announced a partnership worth $16.5 billion, with Samsung set to produce Tesla's next-generation AI6 chips at its Texas fab, running through 2033.
Elon Musk, Tesla's CEO, described the deal as strategically critical, highlighting Samsung's role in providing crucial AI semiconductor supply for Tesla's autonomous vehicles and advanced robotics like the humanoid Optimus robots.
This partnership is a major win for Samsung, elevating its foundry business and expanding its footprint in advanced AI chip manufacturing. The deal dedicates a new Samsung fab in Texas primarily to Tesla’s AI chips, indicating an expansion of Samsung’s manufacturing capabilities in the advanced AI semiconductor sector.
Moreover, Tesla's involvement in optimizing production processes at Samsung’s fab underscores a close collaboration aimed at maximizing manufacturing efficiency, potentially improving Samsung’s foundry technology and operational standards. The exclusive focus on Tesla’s AI6 chip in a dedicated facility further strengthens Samsung’s positioning against competitors like TSMC in next-generation AI chip fabrication.
Before this deal, Tesla and Samsung had a history of collaboration primarily centered around battery technology and energy storage. Tesla began receiving shipments of Samsung SDI's 18650 lithium-ion battery cells in 2016, and Samsung SDI's battery cells were primarily used in Tesla's energy storage products, such as the Powerwall and Powerpack, rather than in Tesla electric vehicles.
Samsung aims to achieve net-zero Scope 1 and 2 emissions by 2030 and is increasing its use of renewable energy. The company operates in over 70 countries and employs more than 260,000 people worldwide.
The new Texas plant will play a crucial role in meeting Tesla's growing demand for AI chips. The plant will receive support from the 2022 Chips Act and Science Act, and the U.S. government will provide grant funding, tax breaks, and other incentives totaling $39 billion to rebuild the American semiconductor industry.
The latest collaboration between Tesla and Samsung underscores Samsung's strategic push into AI chip production and Tesla's commitment to leading-edge technology for autonomous driving and AI applications. The partnership also provides a major, long-term client to Samsung's underperforming foundry division, boosting production volume and credibility.
Samsung briefly surpassed Intel to become the world's largest semiconductor company by revenue in 2024, and in 2025, Samsung is focusing on advancing artificial intelligence and next-generation semiconductor manufacturing. Samsung Electronics Co., a South Korean multinational conglomerate, has secured a significant partnership with Tesla Inc.
Samsung emphasizes circular economy practices by incorporating recycled materials into products and running e-waste collection programs in approximately 80 countries. The company is also working on optimizing production processes to reduce waste and improve energy efficiency.
In summary, the Tesla-Samsung deal is a major strategic win for Samsung, elevating its foundry business, expanding its footprint in advanced AI chip manufacturing, and enhancing its competitiveness in the semiconductor industry through a landmark partnership with Tesla. The collaboration is set to have far-reaching implications for the tech industry, particularly in the areas of autonomous driving and advanced robotics.
This partnership between Tesla and Samsung is a significant step towards investing in advanced artificial-intelligence technology, as Tesla's autonomous vehicles and robots like Optimus will largely depend on the AI6 chips Samsung will manufacture. This deal also marks a strategic shift for Samsung, expanding its business into AI chip manufacturing and boosting the credibility of its underperforming foundry division.
