Tesla Taps Samsung for €14B AI Chip Deal to Power Future Self-Driving EVs

Tesla CEO Elon Musk has officially confirmed a massive €14.08 billion deal with Samsung Electronics, marking a major step forward in Tesla’s AI and self-driving technology roadmap. Under the agreement, Samsung will manufacture Tesla’s upcoming “AI6” chip — the next-generation processor that will drive Tesla's future autonomous vehicles.

The AI6 chips will be produced at Samsung’s state-of-the-art semiconductor foundry in Taylor, Texas, with the deal running through the end of 2033. Elon Musk commented that the €14.08B figure is only the beginning, suggesting the final value could be “several times higher” depending on production volume and project scope.

This deal is a lifeline for Samsung’s foundry division, which has struggled with low client interest and delayed equipment deliveries. The Taylor facility had “virtually no customers” lined up until now, and analysts estimate that the foundry business lost over €3.07 billion in the first half of 2025 alone. The Tesla contract validates Samsung’s massive U.S. investment and immediately boosted its stock to a yearly high.

Tesla, on the other hand, is looking to diversify its chip suppliers. While current AI4 chips are built by Samsung, the AI5 chip is being manufactured by TSMC. By bringing Samsung back for the AI6, Tesla avoids over-reliance on a single chipmaker, and benefits from the proximity of Samsung’s Texas fab — which Musk jokingly noted is "not far from my house."

Production is expected to begin sometime between 2027 and 2028, although Samsung’s Taylor facility has already seen delays and may only be operational by 2026. This timing aligns with Tesla’s plan to begin AI5 chip production at the end of 2026.

With this deal, Samsung gains a crucial anchor customer as it aims to challenge TSMC’s dominance. Currently, Samsung holds just 8% of the global chip foundry market compared to TSMC’s commanding 67% share. But landing a client like Tesla could be the turning point Samsung needs to scale its foundry ambitions.