Elon Musk Celebrates $16.5 Billion AI Chip Supply Deal Between Tesla and Samsung
Samsung signs a $16.5 billion deal to produce AI chips for Tesla, enhancing U.S. semiconductor manufacturing.
Key Points
- • Samsung and Tesla have signed a $16.5 billion AI chip supply deal.
- • The chips will be produced at Samsung’s new plant in Texas.
- • The agreement supports the Biden administration's semiconductor production initiatives.
- • The deal presents a crucial opportunity for Samsung amid challenges in attracting clients.
In a monumental move for the artificial intelligence hardware sector, Samsung has secured a $16.5 billion contract to supply Tesla with next-generation AI chips. The manufacturing of these chips is set to take place at Samsung's newly-built facility in Taylor, Texas, situated near Tesla CEO Elon Musk's residence. This announcement, confirmed through a regulatory filing by Samsung, also underscores a significant stride in U.S. semiconductor manufacturing, aimed at bolstering domestic production capabilities for critical technologies.
The deal will span through the end of 2033, with Musk emphasizing its strategic importance on social media. He stated, "This partnership will help maximize manufacturing efficiency at Samsung's Texas plant,