Samsung will produce AI6 semiconductors, the next-generation chip, for Tesla’s self-driving mode and other projects.

In a regulatory filing in South Korea, Samsung announced it has secured a $16.5 billion multi-year deal to make chips for a “big global company.”

Samsung Electronics has entered into a $16.5 billion contract for supplying semiconductors to Tesla, based on a regulatory filing by the South Korean firm and Tesla CEO Elon Musk ’s posts on X.

Musk noted Tesla is working with TSMC to make AI5 chips, which just finished the design. The A15, a generation that is primarily built for FSD. will initially be made in TSMC’s Taiwan factory and then at its Arizona facility. Samsung already makes the A14 chip, according to Musk.

New Samsung plant will make Tesla AI chips Tesla CEO Elon Musk said a new Samsung plant in Texas will be devoted to making the next

In a familiar critique of corporate structures, Musk also weighed in on the ideal environment for fostering such long-term, existentially focused AI. He declared, “For long-term optimization, it is better to be a private than a public company, as the latter is punished for long-term optimization beyond the reward cycle of stock portfolio managers.”