Tesla has entered into a $16.5 billion agreement with Samsung to produce its next-generation AI chips.
Elon Musk announced on X late Sunday that “Samsung’s new Texas facility will be dedicated to manufacturing Tesla’s AI6 chip.” He emphasized the strategic significance of this partnership.
The AI6 chip, also referred to as Hardware 6, represents Tesla’s vision for an all-in-one design that will power its Full Self-Driving (Supervised) system, the Optimus humanoid robots, and facilitate high-performance AI training in data centers.
Musk mentioned that Tesla is collaborating with TSMC to produce AI5 chips, which have just completed their design phase. Initially, the AI5 chips will be manufactured at TSMC’s facilities in Taiwan and Arizona, while Samsung is already producing the AI4 chip.
This deal is particularly beneficial for Samsung, which has faced challenges in securing major clients for its chip-making endeavors. Musk indicated that Tesla’s spending on Samsung chips could exceed the initial $16.5 billion estimate. “Actual output is likely to be several times higher,” he noted.
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In a follow-up post, Musk revealed that Samsung has agreed to let Tesla help optimize manufacturing efficiency. “This is crucial, as I will personally oversee efforts to accelerate progress, and the facility is conveniently located near my home,” he added.
Tesla transitioned from Nvidia’s Drive platform to its custom chip in 2019, launching the FSD Computer (FSDC), or Hardware 3, across its electric vehicles. This chip, produced by Samsung, features two identical systems on a single board to ensure redundancy for automated driving.
Since then, Tesla’s focus on custom chips has intensified, aligning with its ambition to evolve from an automaker into a leader in AI and robotics.
SOURCE: TECH CRUNCH
